Durata Therapeutics: Moving To Neutral On Likely Closure Of Actavis Takeout, Says Roth Capital
In a research report issued today, Roth Capital analyst Ed Arce downgraded shares of Durata Therapeutics (NASDAQ:DRTX) from Buy to Neutral, while maintaining his $23 price target to reflect the cash consideration from Actavis to acquire Durata,
Arce noted, “More than a week after Durata signed a definitive agreement to be acquired by Actavis, we see no signs that a competitive bid may emerge, nor had we expected any. Further, we believe both sides are well-motivated to close the deal by year end. As such, we downgrade the shares to Neutral as we expect DRTX to continue to trade within a narrow range around $23 through deal closure.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ed Arce has a total average return of 17.0% and a 48.6% success rate. Arce has a 52.7% average return when recommending DRTX, and is ranked #236 out of 3332 analysts.