RBC Capital Views Mylan's (MYL) Meda Purchase as Desperate - PT to $58
RBC Capital reiterated a Sector Perform rating on Mylan (NASDAQ: MYL), and cut the price target to $58.00 (from $60.00), following the company's announcement that they will acquire Meda for $9.9 billion. Separately, MYL missed 4Q. Neither will help the stock and this deal feels desperate in RBC's view.
Analyst Randall Stanicky commented, "MYL announced it will buy Meda for $9.9 billion and while justified as strategic it comes with a harder to justify premium and growth dilution. Separately, MYL missed 4Q. Neither will help the stock and this deal feels desperate to us. While our bias was beginning to shift positive on 2017 we see better alternatives. Sector Perform with target to $58."
For an analyst ratings summary and ratings history on Mylan click here. For more ratings news on Mylan click here.
Shares of Mylan closed at $50.54 yesterday.