Cantor Fitzgerald Maintains a 'Hold' on Medicis (MRX); Looking For The Accretive Transaction
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Price: $70.26 +0.10%
Rating Summary:
10 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
Rating Summary:
10 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
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Cantor Fitzgerald maintains a 'Hold' on Medicis (NYSE: MRX) price target of $36.00.
Analyst, Irina Rivkind, said, "Medicis is taking on $500M of convertible debt (with overallotment) with a 1.375% semi-annual coupon. The conversion price is $47.07 per share...We would reconsider our view on Medicis if it undertook an accretive transaction: We have previously written that Medicis may opt to license privately-held Revance's topical toxin, and estimated a U.S. license for ~$250M with +$2-3 upside to the stock. We think the timing of the Revance negotiation could occur in the next six months, but we lack strong conviction around this event and don't think it would be immediately accretive. There are other aesthetic companies in the space which are already profitable, such as Obagi (NASDAQ: OMPI)(BUY) and privately-held SkinMedica, that we believe could be immediately accretive and also attainable for the company. Furthermore, we think that Medicis may find Obagi's internet pharmacy initiative strategically interesting to further innovate its "alternative fulfillment" program and generate additional revenue in its acne franchise."
For an analyst ratings summary and ratings history on Medicis click here. For more ratings news on Medicis click here.
Shares of Medicis closed at $37.91 yesterday.
Analyst, Irina Rivkind, said, "Medicis is taking on $500M of convertible debt (with overallotment) with a 1.375% semi-annual coupon. The conversion price is $47.07 per share...We would reconsider our view on Medicis if it undertook an accretive transaction: We have previously written that Medicis may opt to license privately-held Revance's topical toxin, and estimated a U.S. license for ~$250M with +$2-3 upside to the stock. We think the timing of the Revance negotiation could occur in the next six months, but we lack strong conviction around this event and don't think it would be immediately accretive. There are other aesthetic companies in the space which are already profitable, such as Obagi (NASDAQ: OMPI)(BUY) and privately-held SkinMedica, that we believe could be immediately accretive and also attainable for the company. Furthermore, we think that Medicis may find Obagi's internet pharmacy initiative strategically interesting to further innovate its "alternative fulfillment" program and generate additional revenue in its acne franchise."
For an analyst ratings summary and ratings history on Medicis click here. For more ratings news on Medicis click here.
Shares of Medicis closed at $37.91 yesterday.
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