UPDATE: Morgan Stanley Resumes Coverage On Mylan As Attractive Valuation Presents Opportunity

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In a report published Thursday, Morgan Stanley analyst David Risinger resumed coverage on
Mylan Inc.MYL
with an Overweight rating and $67.00 price target. In the report, Morgan Stanley noted, "We believe Mylan's depressed multiple is an over-reaction to uncertain growth prospects (e.g., threat of AB-generic competition to Epipen) and ABT share ownership overhang. Mylan trades at one of the lowest multiples in US pharmaceuticals (12x 2016E EPS vs. U.S. Major Avg. of 16x and US Specialty Avg of 17x; see comps table on (pp. 9-10 of pdf), in part due to uncertainty about growth prospects given the threat of AB-rated generic competition to Epipen in summer 2015 and ABT share ownership overhang. MYL's 2016E EV/EBITDA is also attractive at 9x vs. US Major Avg of 12x and Specialty Avg of 14x." Mylan closed on Wednesday at $55.61.
Posted In: Analyst ColorInitiationAnalyst RatingsDavid RisingerMorgan Stanley
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