Bank of America Reiterates Buy Rating, $48 PT on Theravance Following Elan Royalty Deal Rejection

In a report published Monday, Bank of America analyst Steve Byrne reiterated a Buy rating and $48.00 price target on

. In the report, Bank of America noted, “Elan shareholders voted against the THRX' royalty monetization deal ($1bn in exchange for 21% of future sales of Relvar/Breo, Anoro, MABA, and VI), in line with market expectations. While the stock is down 14% in the last month as the outlook for this deal has diminished, we note that it was neutral to our valuation. Our $48 PO is unchanged but includes a $1/share shift from Royalty Management Co. (now $39/share) to Biopharma (now $9/share). We maintain our Buy rating on THRX shares, based on attractive valuation and several potential catalysts in the next 6-9 months.” Theravance closed on Friday at $36.26.