Analysts Cut Target Prices on MYL Stock after Its Q2 2018 Results

Analysts’ recommendations for MYL

Myan (MYL) reported its second-quarter earnings on August 8. For brief highlights, please read Mylan Stock Falls on Q2 Results: Misses Estimates, Cuts Outlook. Following its weak second-quarter performance, multiple brokerages updated their recommendations and target prices on MYL stock, which we’ll discuss in this article.

On August 13, a Reuters survey comprising 20 brokerage firms tracking MYL stock showed that 13 firms (65%) still hold a “buy” or “strong buy” recommendation on Mylan stock. The remaining seven (35%) firms have “hold” ratings on Mylan stock.

Analysts Cut Target Prices on MYL Stock after Its Q2 2018 Results

None of the firms provided a “sell” recommendation on Mylan despite its weak second-quarter performance and a downward revision to its fiscal 2018 outlook during the earnings announcement. However, several analysts cut their target prices on the stock for the next 12 months, which we’ll discuss later in this article.

On August 13, Mylan had a consensus 12-month target price of $46.61, implying a 12-month investment return potential of ~25.3%. This return is based on the stock’s closing price of $37.21 on August 10.

Among Mylan’s peers, Teva Pharmaceutical Industries (TEVA), Merck (MRK), and Novartis (NVS) had average analysts’ target prices of $21.09, $70.52, and $89.75, respectively. These price targets imply 12-month returns of -6.2%, 6.7%, and 9.3%, respectively.

Analysts’ rating revisions and updates

Cowen and Company cut its target price on Mylan stock from $38 to $31 on August 8—the day the company announced its second-quarter results. On August 9, J.P. Morgan and Leerink also decreased their target prices on MYL stock from $53 to $48 and $53 to $47, respectively.

On the same day, Raymond James and BMO also reduced their target prices on Mylan. Raymond James lowered its recommendation on the stock from “strong buy” to “outperform.” On August 9, MYL stock was down ~3.8% as these brokerages made these downward revisions to their outlook on MYL stock.

Next, let’s discuss MYL’s recent stock performance.

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