Market Overview

Meeting With Mylan Management Shows This Is The Stock's Biggest Problem

Share:
Meeting With Mylan Management Shows This Is The Stock's Biggest Problem
Related MYL
Attention Biotech Investors: Mark Your Calendar For These December PDUFA Dates
The Week Ahead: Earnings Season Continues, Several IPOs, Notable Conferences On The Docket
Biotech Analysis Central Pharma News: Sage's Depression Results, Pfizer's Viagra Move, Viking's Run (Seeking Alpha)
  • Mylan NV (NASDAQ: MYL) shares have lost 27 percent since February 8.
  • RBC Capital Markets’ Randall Stanicky maintained a Sector Perform rating for the company, with a price target of $58.
  • Although Mylan’s stock is inexpensive, there are few catalysts to drive upside, Stanicky stated.

Mylan had been pursuing a deal with Media Analytics Corp (OTCMKTS: MEDA) for quite some time. The deal adds OTC, which is “an area of high interest,” analyst Randall Stanicky said.

He added, however, that the 92 percent premium, along with the “unexpected nature” of the deal created “sticker shock,” especially since it came so quickly after the takeover of Perrigo Company plc Ordinary Shares (NYSE: PRGO).

Although the deal with Media Analytics has some strategic merit, “the challenge is more about finding the right balance of (i) strategic expansion (ii) ROI/EPS accretion and importantly (iii) improvement to overall growth,” Stanicky wrote. He added that Mylan should rather add higher growth assets to the platform.

Mylan reported its 4Q results short of expectations. The adj. diluted EPS estimates for 2016 and 2017 have been reduced from $4.87 to $4.86 and from $5.32 to $5.31, respectively.

Although the stock is currently inexpensive, it is unclear what would reverse the recent weakness in the absence of any significant catalysts, the analyst commented, while adding, “In other words, we do not see a need to rush into the stock but for those with longer time horizons MYL sets up as a value play with improving 2017 outlook.”

Latest Ratings for MYL

DateFirmActionFromTo
Oct 2017Morgan StanleyMaintainsEqual-Weight
Oct 2017BTIG ResearchMaintainsBuy
Aug 2017ArgusDowngradesBuyHold

View More Analyst Ratings for MYL
View the Latest Analyst Ratings

Posted-In: Randall Stanicky RBC Capital MarketsAnalyst Color Health Care Reiteration Analyst Ratings General Best of Benzinga

 

Related Articles (MYL + PRGO)

View Comments and Join the Discussion!

Partner Center