Deutsche Bank Starts AMAG Pharmaceuticals (AMAG) at Hold

Deutsche Bank initiated coverage on AMAG Pharmaceuticals (NASDAQ: AMAG) with a Hold rating and a price target of $75. Analyst Gregg Gilbert noted recent outperformance and he sees risk-reward as balanced. Gilbert called the stock an attractive acquisition candidate.

"AMAG’s lead product Makena (for preterm birth; 2/3 of revs) should drive strong revenue and earnings growth over the next several years. At current levels, and with the stock up >60% YTD, we believe the risk/reward for the stock is reasonably balanced, with a bias to the long side. Our PT is based on a DCF model that assumes continued strong growth for Makena and Feraheme (iron), and importantly, is based upon a generous exclusivity assumption for Makena, for which generic competition is possible in 2018. We note that business development, a core part of AMAG’s strategy, is not factored into our model and could drive upside. AMAG could also be viewed as an attractive acquisition candidate in a consolidating environment," said the analyst.

For an analyst ratings summary and ratings history on AMAG Pharmaceuticals click here. For more ratings news on AMAG Pharmaceuticals click here.

Shares of AMAG Pharmaceuticals closed at $68.98 yesterday.

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