Deutsche Bank Upgrades Elan Corp (ELN) to Buy; AD Pipeline Offers Asymmetric Upside Risk in 2012

Deutsche Bank upgraded Elan Corp (NYSE: ELN) from Hold to Buy, price target raised from E7.90 to E10.90.

Deutsche analyst says, "We are upgrading our recommendation given our belief that the shares are fully underpinned by future cash-flows from Tysabri and that delivery of pivotal data from trials of Alzheimer’s disease (AD) pipeline asset bapineuzumab has potential to drive >70% upside to the shares in 2012. While failure of the AD pipeline could see the shares trade to a discount to our US$11-13/share asset value (i.e.Tysabri NPV), we see the upside risk/reward as attractive even for those pessimistic on the probability of a successful outcome."

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 $11.11 yesterday.

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