UPDATE: Stifel Downgrades Theravance Following Post-Split Accretion

In a report published Thursday, Stifel analyst Stephen Willey downgraded the rating on

from Buy to Hold, and removed the $47.00 price target. In the report, Stifel noted, “We are viewing the recent post-split accretion in THRX shares as an opportunity to step to the sidelines. We believe the justification of additional upside from here requires a significant acceleration of Breo sales not supported by current script trends and likely further confounded by the longer-term cannibalization of sales following the introduction of triple-therapy. "Our reduced peak Breo sales estimate ($2.1B vs. prior $2.7B) remains heavily-dependent on a FY15 U.S. asthma label. Our longer-term enthusiasm for Anoro in COPD remains unchanged ($2.1B peak), but the initial Breo-like launch trajectory further exacerbates the lack of urgency here. Fair value is now estimated at approximately $25/share.” Theravance closed on Wednesday at $26.40.