UBS maintains a 'Buy' on Valeant Pharmaceuticals (VRX); Increasing PT for CEPH Deal
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Price: $23.40 --0%
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS maintains a 'Buy' on Valeant Pharmaceuticals (NYSE: VRX), raises PT from $46 to $63.
UBS analyst says, "We believe the combined VRX/CEPH could have EPS of $5.25 in 2013. Our estimate assumes Valeant acquires Cephalon (Nasdaq: CEPH) at $78/share which requires ~$7B of debt at a 7% rate, cost synergies of $500M, and a combined tax rate of 20%. Cephalon would add ~$2.40 of EPS to Valeant while the debt would cost ~$1.20. Thus, based upon a 12x multiple, CEPH would add ~$14/share in value to Valeant...In our view the increase in VRX incentivizes mgmt. to complete the deal. Also, we believe Cephalon will be hard pressed to step away from a process given its own share increase and the fact that shareholders are voting soon." (FY12 EPS estimate increased from $3.45 to $3.50)
For more ratings news on Valeant Pharmaceuticals click here and for the rating history of Valeant Pharmaceuticals click here.
Shares of Valeant Pharmaceuticals closed at $54.05 yesterday.
UBS analyst says, "We believe the combined VRX/CEPH could have EPS of $5.25 in 2013. Our estimate assumes Valeant acquires Cephalon (Nasdaq: CEPH) at $78/share which requires ~$7B of debt at a 7% rate, cost synergies of $500M, and a combined tax rate of 20%. Cephalon would add ~$2.40 of EPS to Valeant while the debt would cost ~$1.20. Thus, based upon a 12x multiple, CEPH would add ~$14/share in value to Valeant...In our view the increase in VRX incentivizes mgmt. to complete the deal. Also, we believe Cephalon will be hard pressed to step away from a process given its own share increase and the fact that shareholders are voting soon." (FY12 EPS estimate increased from $3.45 to $3.50)
For more ratings news on Valeant Pharmaceuticals click here and for the rating history of Valeant Pharmaceuticals click here.
Shares of Valeant Pharmaceuticals closed at $54.05 yesterday.
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