Mylan (MYL): Cutting Ests On Continued Headline Risk - RBC
- Nasdaq hits record; bank earnings validate Wall St. rally
- Intrawest Resorts (SNOW) Exploring a Possible Sale - Reuters
- Alibaba (BABA) Has No Plans to Acquire Rest of Groupon (GRPN) - Source
- Time (TIME) Said to Soon Begin Discussions with Interested Buyers - Bloomberg
- JPMorgan (JPM) Reports Q4 EPS of $1.71
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
RBC Capital analyst, Randall Stanicky, reiterated his Sector Perform rating on shares of Mylan (NASDAQ: MYL) but cautioned investors that headline risk is likely to remain with the company for some time.
The analyst stated "Epipen headline is not going away with House Oversight and Government Reform Committee investigation underway despite moves by MYL to appease critics. MYL has now announced (i) that "net pricing" for Epipen had been $274 (with channel realizing the remaining $334 of $608 list price) (ii) on 8/25 expansion of its patient access programs via savings cards of up to $300 and doubling of eligibility for the patient assistance program and (iii) on 8/29 that it will be introducing a generic Epipen at a "list price" of $300. While generic share and effective "net" pricing is unclear, we are lowering our gross-to-net assumptions which drives our EPS lower by $0.22 and $0.15 in 2017-18 (-4% and -2%) and we are lowering our price target to $48. Overall, each 10% hit to Epipen revenue impacts EPS by $0.14 or 3%."
The price target is cut to $48 from $52.
Shares of Mylan closed at $39.97 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: RBC Capital Upgrades Colfax Corporation (CFX) to Outperform
- FBR Capital Raises Price Target on Gentex Corp (GNTX) to $25 Following CES 2017
- BMO Capital Cuts Price Target on Ritchie Bros. Auctioneers (RBA) to $33
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesRBC Capital
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!