Mylan's (MYL) Price Target Reduced to $65 at Deutsche Bank

Deutsche Bank maintained a Buy rating on Mylan (NASDAQ: MYL) but cut its price target to $65.00 (from $82.00). The change reflects standalone valuation after Teva Pharma (NYSE: TEVA) earlier withdrew its agreement to acquired the company.

"Following TEVA’s announced plan to acquire Allergan Generics rather than MYL, we are moving back to a standalone valuation basis for MYL, which takes our PT to $65 (from $82, which was TEVA’s initial offer)," said analyst Gregg Gilbert.

"We are sticking with our Buy rating, as our target for standalone MYL supports upside from here. We note that our estimates and thesis could be influenced by the outcome of MYL’s planned acquisition of PRGO (which PRGO has rejected). The next key step in that process will be a vote by MYL’s shareholders on the proposed acquisition; MYL indicated this morning that it expects the vote to occur in the next several weeks. In the short-term, it is worth considering that ABT owns 70mn shares (14.2%) and TEVA owns 22.6mn shares (4.6%), and with neither company likely to be a long-term investor, those shares represent an overhang. In addition, it will be interesting to see if interest in PRGO from other parties emerges in the coming weeks," he added.

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 $65.94 yesterday.

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