UPDATE: Jefferies Downgrades Warner Chilcott on Pending ACT Acquisition

In a report published on Monday, Jefferies analyst Corey Davis downgraded Warner Chilcott (NASDAQ: WCRX) from Buy to Hold and maintained a price target of $20.

In the report, Jefferies stated, "Our move is not tied to any fundamental change in our thesis, but rather stems from Actavis' (ACT, Hold) proposed $8.5B acquisition of WCRX announced last month. Since it is a stock-for-stock deal, WCRX shares have been trading in tandem with ACT, but in a fairly tight range close to our $20 PT. With the acquisition moving forward (ACT filed an S-4 on June 18th in connection with the proposed acquisition), and absent any higher bidders or regulatory obstacles, we are now moving to the sidelines on WCRX shares."

Warner Chilcott closed on Friday at $19.28.