UPDATE: Bank Of America Reiterates On Mylan Following Abbott Transaction

In a report published Tuesday, Bank of America analyst Sumant S. Kulkarni reiterated a Buy rating on Mylan (NASDAQ: MYL), and raised the price target from $62.00 to $67.00.

In the report, Bank of America noted, “MYL announced that it is buying Abbott's specialty branded/generic business in the non-US developed markets in an all-stock transaction valued at $5.3bn (~2.8x revs, ~8.8x EBITDA pre-synergies). This deal makes strategic sense to us as it further diversifies MYL's revenue base (product mix, geography) and also affords MYL the ability to pursue additional business development in a more efficient tax structure; the company will re-domicile (“tax inversion”) in the Netherlands on closing. Based on the addition of this deal, we are raising our DCF-based PO from $62 to $67 and are reiterating our Buy rating. While integration will not be without risk, we note that MYL has executed well on its goals (organic and M&A) over the past few years.”

Mylan closed on Tuesday at $51.24.