Mizuho Gives Actavis Buy Rating Following AGN Acquisition Close

In a report published Friday, analysts at Mizuho Securities initiated coverage of Actavis plc ACT with a Buy rating and a price target of $358. With the closure of the AGN acquisition in March, Actavis has become a major player in the both the generics and the brands markets. "Senior management has executed via skillful transaction integration, and driven revenue expansion through technological innovation and commercial focus," the analysts said, while adding that the AGN acquisition "brings high margin specialties and branded scale." According to Mizuho, the company's pipeline is currently underappreciated by the market. The analysts expect the company to be able to bring in revenue worth $4 billion, on the conservative side via branded launches through 2015-2018. Mizuho also expect Actavis to undertake further accretive acquisitions over the next 12-18 months, in the range of $1 billion to $15 billion. The company's generics business ideally complements its branded division, according to the analysts. Near-term events to look out for include the announcement of 1Q15 results on May 11 and the pending Namenda general appeal decision.