Cantor Reiterates Hold On Cubist Pharmaceuticals, $64 PT

In a research report issued today, Cantor analyst Irina Rivkind Koffler reiterated a Hold rating on Cubist Pharmaceuticals (NASDAQ:CBST) with a price target of $64.00.

Koffler said, “Cubist reports 3Q:14 earnings after the close on October 21. We estimate revenues of $295.4M and adjusted EPS of $0.37 vs. FactSet consensus of $305.5M and $0.38, respectively. We continue to believe that operating costs are too high, and on a P/E multiple basis the stock valuation appears more expensive relative to its peers (26x 2015 P/E vs. 22x for the group, including potential takeout targets like Allergan and Salix). However, we remain constructive on CBST primarily because we cannot rule out a company takeout. Actavis’ recent acquisition of Durata highlights the ongoing attractiveness of M&A in the antibiotic space. Additionally, we think that FDA approval of Cubist’s long-awaited gram-negative antibiotic, CXA-201 (December 21 PDUFA), could support the stock.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Irina Rivkind Koffler has a total average return of 11.9% and a 52.8% success rate. Rivkind Koffler has a -18.9% average return when recommending CBST, and is ranked #211 out of 3335 analysts.

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