Depomed (DEPO): Raising PT to $27 - Mizuho
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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
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesIrina Koffler
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