Market Overview

UPDATE: Piper Jaffray Downgrades Santarus Following Salix Acquisition Announcement

Share:

In a report published Friday, Piper Jaffray analyst David Amsellem downgraded the rating on Santarus (NASDAQ: SNTS) from Overweight to Neutral, but raised the price target from $31.00 to $32.00.

In the report, Piper Jaffray noted, “This afternoon, Santarus announced it has entered into a definitive agreement to be acquired by Salix for $2.6B in cash (or $32 per share). This is a premium of roughly 38% over SNTS' closing price; this represents a P/E of 19x our 2014 EPS estimate of $1.65 (revised following SNTS' 3Q13 announcement). We believe that SNTS is a logical target for SLXP given that it broadens SLXP's reach in the gastroenterology space (particularly with the addition of Uceris to SLXP's product portfolio). In that sense, we do not envision a higher bid for SNTS emerging given our view that no other acquiror would synergize quite as well with SNTS. As such, we are downgrading SNTS to Neutral from Overweight. We are slightly raising our price target to $32 from $31 to reflect the proposed acquisition price.”

Santarus closed on Thursday at $23.22.

Latest Ratings for SNTS

DateFirmActionFromTo
Dec 2013DowngradesBuyHold
Nov 2013DowngradesBuyNeutral
Nov 2013DowngradesOverweightNeutral

View More Analyst Ratings for SNTS
View the Latest Analyst Ratings

Posted-In: David Amsellem Piper JaffrayAnalyst Color Downgrades Analyst Ratings

 

Related Articles (SNTS)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
EBAYMaintains34.5
WDCReiterates60.0
WATMaintains230.0
WRBMaintains56.0
MRVLMaintains29.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Four Ways to Profit from America's Wealthiest Citizens

UPDATE: Jefferies Initiates Coverage on Antero Resources on Compelling Valuation