UBS Downgrades Cubist To Neutral Based On The Proposed Merck Deal
UBS analyst Marc Goodman is out with a research report on Cubist Pharmaceuticals (NASDAQ:CBST), in which he downgrades the stock from Buy to Hold, but raises his price target to $102 (from $90), which represents a slight upside potential from current levels.
Goodman noted, “Our new price target is based on the deal price from Merck. We now assume that Cubist will be acquired by Merck and that no other bidders will emerge. Merck has indicated that it will move forward with the deal, therefore we assume that the stock with trade closer to $102 as we get closer to the closing date.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Marc Goodman has a total average return of 18.1% and a 79.3% success rate. Goodman has a 24.6% average return when recommending CBST, and is ranked #269 out of 3413 analysts.