Oppenheimer Comments On Cubist Pharmaceuticals As Merck Is Nearing An $8B Takeover


Oppenheimer analyst Akiva Felt joined the crowd today, reiterating an Outperform rating on Cubist Pharmaceuticals (NASDAQ:CBST) while also, surprisingly, keeping his price target at $83, as multiple news outlets reported that Merck is nearing an ~$8B takeover of CBST.

Felt wrote, “As we’ve stated previously, a deal for CBST makes a lot of sense given the operating leverage potential and the need for a large European build-out to launch Zerbaxa. Merck is an appropriate suitor, in our view, as would other strategic (i.e., big-pharma) or financial (i.e., spec-pharma) suitors.”

The analyst added, “While the reported “about” $100/sh takeover price is a nice premium, we think MRK could justify closer to $110 a share. The timing of the news is somewhat puzzling given the pending Cubicin patent litigation ruling, but all the pieces are there to believe the news reports, in our view.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Akiva Felt has a total average return of 38.3% and a 56.3% success rate. Felt has a 7.5% average return when recommending CBST, and is ranked #91 out of 3398 analysts.

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