Analysts’ views on Mylan
Mylan (MYL) is one of the leading generic drugmakers in the world. However, the company has been through troubled times with its allergy product Epipen. Sanofi filed a lawsuit against Mylan claiming high pricing of the product, and Mylan lost.
Mylan also missed its sales and earnings estimates for its first-quarter earnings. Recently, though, the company has received a number of key FDA approvals. Let’s take a look at analysts’ recommendations for MYL.
Of the 20 analysts covering MYL on June 26, 13 (~65%) have recommended “buys” or “strong buys” on its stock, while the remaining seven (~35%) have recommended “holds” on its stock. Despite the company’s weak performance of recent, no analysts have recommended “sells” on its stock.
According to analysts, the consensus target price for MYL stock over the next 12 months is $49.05, which implies a ~28.7% return over the next year calculated on the basis of MYL’s June 25 closing price of $38.11.
Analysts’ average target prices for MYL’s peers Pfizer (PFE), Teva Pharmaceutical (TEVA), and Novartis (NVS) are $39.86, $19.78, and $88.17, respectively, implying potential returns of 9.6%, -16.1%, and 19.1%, respectively, over the next 12 months.
Recent ratings and target price updates
On June 14, Raymond James cut its target price on MYL stock from $50 to $49 after the company announced that the FDA had not approved its Advair generic, citing certain deficiencies. However, on June 5, Cowen and Company raised its target price on Mylan from $36 to $38 after the company announced that it had received FDA approval for its biosimilar to Amgen’s (AMGN) Neulasta on the day. The development is discussed in detail later in this series. On the day, Leerink Partners also raised its target price on Mylan from $52 to 53.
In the next article, let’s take a look at Mylan’s valuation.
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