UBS: Baxalta Is A Buy Even If Shire Buyout Doesn't Happen

Baxalta Inc BXLT shares had a big Monday after a Bloomberg report of acquisition interest from Shire PLC (ADR) SHPG hit wires over the weekend.

According to the report, Shire is in advanced talks to buy Baxalta for about $32 billion in cash and stock excluding debt -- a per share price between $46.50 and $48.

UBS analysts have since reacted to the rumor.

UBS Analyst: We Still Like Baxalta

In a note to subscribers, analyst Matt Miksic explained that it had been his firm's view since its coverage launch in September, "another offer was possible." Miksic's Buy rating on Baxalta is not contingent on a deal, he added.

The analyst also highlighted recent positive performance. "[S]ince declining to engage Shire on its initial offer in August, the company has beat Q3 estimates, raised guidance for 2015, guided to an above-consensus outlook for 2016 and obtained two key new pipeline approvals (Adynovate and Vonvendi.)"

UBS holds a Buy rating on Baxalta. In its initiation last Fall, the firm unveiled a $46 price target on the stock.

At that time, Miksic said its 100-patient UBS Evidence Lab US Haemophilia survey provided the "best feedback we've ever seen" on haemophilia A patients.