UPDATE: Credit Suisse Initiates PDL Biopharma at Neutral on Dividend Continuity Questions

Credit Suisse initiated coverage on PDL Biopharma

with a Neutral rating and a $6.50 price target. Credit Suisse noted, "PDLI is unique among biotech companies, collecting royalties from some of the industry's biggest blockbuster antibodies and paying investors a high dividend, which we believe is fully reflected in its price. PDLI's value is primarily derived from Roche's antibody products, but increasingly it fortunes are tied to Eli Lilly's solanezumab. … PDLI is also leveraged to outperform Roche's products, for example Perjeta and T-DM1. We also expect an update to PDLI's plans to return capital to investors, potentially on its year-end conference call, which could include a special dividend." PDL Biopharma closed at $7.83 on Monday.