Needham & Company Maintains a 'Hold' on Watson Pharmaceuticals (WPI); Actavis Acquisition Big, But Easy Money Already Made
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Price: $85.73 --0%
Rating Summary:
13 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Watson Pharmaceuticals (NYSE: WPI).
Analyst, Elliot Wilbur, said, "WPI announced the acquisition of Actavis Group, a privately held global generics co. with $2.5B in 2011 revenue. Deal is a strategic plus in our view as it significantly strengthens WPI’s international generic footprint with pro forma international revenue increasing to 40% from ~16%, affording substantial near-term synergy potential with year three synergies estimated at ~$300MM while substantially reducing WPI’s outsized corporate tax burden to ~28% from current 37%...Deal introduces significantly greater risk into what has been a story of strong execution around U.S. generic pipeline dynamics and given that so much of the EPS accretion pop is tied to favorable mechanics of financing in a zero interest rate regime combined with substantially lower Actavis tax rate."
For an analyst ratings summary and ratings history on Watson Pharmaceuticals click here. For more ratings news on Watson Pharmaceuticals click here.
Shares of Watson Pharmaceuticals closed at $69.69 yesterday.
Analyst, Elliot Wilbur, said, "WPI announced the acquisition of Actavis Group, a privately held global generics co. with $2.5B in 2011 revenue. Deal is a strategic plus in our view as it significantly strengthens WPI’s international generic footprint with pro forma international revenue increasing to 40% from ~16%, affording substantial near-term synergy potential with year three synergies estimated at ~$300MM while substantially reducing WPI’s outsized corporate tax burden to ~28% from current 37%...Deal introduces significantly greater risk into what has been a story of strong execution around U.S. generic pipeline dynamics and given that so much of the EPS accretion pop is tied to favorable mechanics of financing in a zero interest rate regime combined with substantially lower Actavis tax rate."
For an analyst ratings summary and ratings history on Watson Pharmaceuticals click here. For more ratings news on Watson Pharmaceuticals click here.
Shares of Watson Pharmaceuticals closed at $69.69 yesterday.
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