Analysts’ recommendations and target prices
Wall Street analysts expect an upside potential of 26.56% for Mylan (MYL), based on the company’s closing price on March 22. In 2019, analysts have revised the company’s target price downward twice, from $41.47 in January to $41.67 in February and to $36.31 in March. The current consensus analyst recommendation for the stock is “buy.”
To learn about the key growth drivers for Mylan in fiscal 2019, see What Are Mylan’s Key Growth Drivers in Fiscal 2019?
Of the 18 analysts covering Mylan, seven recommend a “strong buy,” seven recommend a “buy,” and four recommend a “hold.” The highest target price estimate for the company is $47, and the lowest is $25.
On March 22, Mylan closed at $28.69, 1.91% lower than its previous closing price, 10.35% higher than its 52-week low of $26.00, and 32.49% lower than its 52-week high of $42.50. The company’s market capitalization is $14.76 billion.
Based on its closing price on March 22, Mylan has reported returns of 2.14% in the last week, -7.63% in the last month, and 3.50% in the last quarter. The company has reported returns of -24.97% in the last half-year, -30.30% in the last year, and 4.71% year-to-date.
Why the downward revisions?
In the fourth quarter, Mylan reported revenues of $3.08 billion and non-GAAP EPS of $1.3, lower than the consensus estimates by $16.82 million and $0.06, respectively.
Investor sentiment fell further after the company announced weaker-than-anticipated fiscal 2019 guidance on its fourth-quarter earnings conference call. Mylan expects its fiscal 2019 revenues in the range of $11.5 billion–$12.5 billion, which would mean 5% year-over-year growth at the midpoint. The company, however, has guided for non-GAAP EPS of $3.80–$4.80 for fiscal 2019, which means a rise of 6% at the midpoint.
On the fourth-quarter earnings call, the company forecast a wider-than-usual EPS range in fiscal 2019 to account for higher volatility in its business. In fiscal 2018, Mylan reported non-GAAP EPS close to the lower end of its guidance. The company suffered a less-than-anticipated uptake of its generic Copaxone as well as a delay in FDA approval for generic Advair, Wixela Inhub, in 2018.