Elan (ELN) Will Be a Buyer Not a Seller, Unless Offer Nears $20/Sh - Jefferies

February 26, 2013 11:38 AM EST
Get Alerts ELN Hot Sheet
Price: $18.12 --0%

Rating Summary:
    0 Buy, 9 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 16 | New: 13
Trade ELN Now!
Join SI Premium – FREE
Jefferies commented on Elan Corp (NYSE: ELN) following yesterday's $11/share bid from Royalty Pharma. The firm said while it was a "low ball" offer they expect the company will be doing the 'offering' as it likely remains independent and deploys its ~$4 billion cash war-chest. This could change if a bidder is prepared to get closer to $20 per share, they said.

The firm issued new estimates which decline post-Tysabri restructuring but don't reflect accretive uses of the cash nor $1B share buyback. FY13 goes down from $0.46 to $0.09 and FY14 goes from $0.65 to $0.13.

The firm is maintain a Buy rating and $14 price target on ELN.

For an analyst ratings summary and ratings history on Elan Corp click here. For more ratings news on Elan Corp click here.

Shares of Elan Corp closed at $11.14 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Rumors

Related Entities

Jefferies & Co, Stock Buyback

Add Your Comment