Canaccord Reiterates Buy, $45 Price Target on Alere
Canaccord analyst Mark Massaro maintains his Buy rating and $45 price target on Alere (ALR) following the news that Alere has decided not to pursue an IPO of its BBI Diagnostics subsidiary.
“While the market reaction implies that the company could not realize “full value” of its IPO at this time, we believe Alere will realize “market-rate value” for its subsidiary at some point via other means. As a result, we believe the market reaction is overblown. We believe ALR is firmly committed to divesting non-core assets and paying down debt, and is assessing a variety of options to do so”, says Massaro.