Depomed (DEPO): Raising PT to $27 - Mizuho

September 19, 2016 9:23 AM EDT
Get Alerts DEPO Hot Sheet
Price: $19.98 --0%

Rating Summary:
    10 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 4
Trade DEPO Now!
Join SI Premium – FREE

Get access to the best calls on Wall Street with's Ratings Insider Elite. Get your Free Trial 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.

For an analyst ratings summary and ratings history on DepoMed Inc click here. For more ratings news on DepoMed Inc click here.

Shares of DepoMed Inc closed at $24.34 yesterday

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst PT Change

Related Entities

Irina Koffler

Add Your Comment