Jefferies lifted its price target on Cubist Pharmaceuticals (NASDAQ: CBST) from $64 to $70
Look at what the TSRX deal did for Cubist? Vote NO!
Jefferies lifted its price target on Cubist Pharmaceuticals (NASDAQ: CBST) from $64 to $70 and reiterated its Buy rating after the company acquired Optimer Pharmaceuticals, Inc. (NASDAQ: OPTR) and Trius Therapeutics, Inc. (NASDAQ: TSRX).
Analyst Eun K. Yang, Ph.D. comments, "On our pro-forma valuation, the deal is accretive to CBST earnings by 7%/13%/17% for 2014-2016. Given the potential of already marketed OPTR's Dificid and yet-to-be approved TSRX's tedizolid (& near-term generic competition), our view is transaction value of OPTR is quite attractive to CBST, but uncertain of TSRX."