UPDATE: Citigroup Initiates Coverage on Actavis PLC as Stock is Firing on All Cylinders

In a report published Friday, Citigroup analyst Liav Abraham initiated coverage on Actavis PLC (NYSE: ACT) with a Buy rating and $172.00 price target.

In the report, Citigroup noted, “Initiating with Buy and Target Price of $172. Our favored name amongst the multinational generic companies – We anticipate a continued re-rating of Actavis' share price over the near to medium term, as the company delivers robust organic and inorganic growth. Our 5-year sales and earnings estimates are 6.4% and 11.2%, respectively, driven by solid growth in the company's core franchises, as well as margin accretion from the recent Watson-Actavis and WCRX acquisitions. Actavis and Teva are our preferred names amongst the multinational generic names.”

Actavis PLC closed on Thursday at $145.75.