Needham & Company maintains a 'Strong Buy' on Mylan (MYL); PRX Grossly Undervalued by TGP, MYL/PRX Instead As Strong Combo

July 20, 2012 8:31 AM EDT
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Price: $36.73 --0%

Rating Summary:
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Needham & Company maintains a 'Strong Buy' on Mylan (NASDAQ: MYL) price target of $30.00.

Analyst, Elliot Wilbur, said, "Mylan competitor Par Pharmaceutical (PRX) is in play following a $50 bid from private equity shop TPG. We believe TPG’s $50/share ($1.9B) offer, a multiple of 7.5X 2012E EBITDA, grossly undervalues PRX considering substantial synergies that could be realized by a strategic acquirer. We think value optimization would be most realizable by a strategic buyer that could effectively take PRX’s key revenue-generating assets and its pipeline and leave the rest. Few players besides Teva, Watson, Sandoz and Mylan seem to have the capability to acquire Par (NYSE: PRX), and with Watson (NYSE: WPI) busy closing the Actavis deal and Teva (Nasdaq: TEVA) reformulating strategy under new management, MYL appears best positioned to act."

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

Shares of Mylan closed at $22.61 yesterday.

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