UPDATE: Jefferies Reiterates Hold Rating, Raises PT on Actavis on WCRX Acquisition Announcement

In a report published Tuesday, Jefferies analyst Corey Davis reiterated a Hold rating on Actavis (NYSE: ACT), and raised the price target from $120.00 to $133.00.

In the report, Jefferies noted, “ACT buying WCRX makes sense strategically and financially, but given the stock run subsequent to a formal announcement, ACT looks fairly valued based on our new numbers. We estimate '14 pro forma EPS of $13.27 (implying 47% accretion) but given WCRX's anticipated revenue cliff in '15/'16, buying slower growth/generic risk warrants use of a lower 10x multiple (prior 13x on ACT standalone) on combined EPS and thus we maintain our Hold.”

Actavis closed on Monday at $125.50.