Citi Says Mylan (MYL) Shares Are A Buy

Citi Investment Research & Analysis analysts John Boris, Morten Marott, Timothy W Chou and Nirav Jhaveri rated shares of Mylan Inc (Nasdaq: MYL) a Buy, with a target price of $23 per share.

The analysts said that the management of Mylan Inc said that pricing pressure on European generic drugs had been anticipated and that it has mostly been offset by increasing volume.

The Citi Investment Research & Analysis analysts wrote, "MYL also still has significant opportunities from right sizing its European infrastructure, with ~1,000 reps selling <$2B in Europe vs. 5-10 reps in the US with >$2B in sales. MYL is on track to realizing the expected $350M in synergies in 2010, most significantly in 2H10. Synergies may continue to grow after 2010. The decline in the EUR vs. the USD is of no material impact to MYL with natural hedges through EUR debt. MYL is not concerned with the slow growth (1% on a constant currency basis) of its business in Europe in 1Q10, but sees 'enormous' opportunities from the increase in generics utilization for which more and more countries are now incentivizing pharmacies."