Depomed (DEPO): Raising PT to $27 - Mizuho
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Mizuho Securities analyst, Irina Koffler, reiterated her Buy rating on shares of DepoMed Inc (NASDAQ: DEPO) and raised her price target to $27 from $23 after extending her model to 2024 to incorporate a longer-term view of the business. The analyst believes a 2024-2025 settlement for Nucynta/ ER would allow her to model the patent cliffs for the remainder of DEPO's portfolio.
A takeout seems more likely however. Horizon acquired RPTP for 6.6x LTM Procysbi sales but the analyst thinks that DEPO's lower margin pain drugs could go for a lower 5x sales multiple. If she applies a multiple of 5x to a 2017 estimate of $545M, and subtracts net debt of $346M, the analyst arrives at a takeout per share value of $29.
Shares of DepoMed Inc closed at $24.34 yesterday
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Cowen Downgrades Under Armour, Inc. (UA) to Market Perform
- Stifel Positive on Vertex (VRTX) as Triple Combo Moves Forward; PT Trimmed to $108
- New Oriental Education (EDU) PT Raised to $60 at Brean Capital
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesIrina Koffler
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!