Roth Capital reiterated a Buy rating on Lannett Co (NYSE: LCI), and raised the price target to $68.00 (from $62.00), following the transformative acquisition of Kremers Urban Pharmaceuticals. The transaction almost doubles the revenue base for LCI, and suggests 2016 EPS accretion of mid-to-high single digits and 20-25% in 2017.

Analyst Scott Henry commented, "LCI announced a transformative acquisition of Kremers Urban Pharmaceuticals for $1.23B in cash. This deal could potentially double the revenue base and be accretive to 2016/17 EPS targets (20-25% in 2017). We reiterate our Buy rating with an increased PT of $68 to reflect EPS accretion."

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Shares of Lannett Co closed at $49.48 yesterday.