In a research report issued today, Brean Capital analyst Difei Yang reiterated a Buy rating on Horizon Pharma PLC (NASDAQ:HZNP) and raised the price target to $40 (from $33), after the company proposed to buy Depomed Inc (NASDAQ:DEPO) for $3 billion after earlier attempts to make a deal were rejected.
Yang wrote, “We view Horizon Pharma’s $3 billion offer to acquire Depomed as being in the reasonable range. There could be another 5-15% upside to the current offer if Horizon chooses to stretch it. We are confident that few companies could match Horizon’s offer. We have revised our TP from $33 to $40 solely based on better-than-expected revenue growth quarter to date on Pennsaid and Duexis. We believe the better-than-expected sales trajectories on multiple products are likely to carry into 2016 leading us to increase our revenue forecast for 2016 by 6%.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Difei Yang has a total average return of 17.4% and a 60.6% success rate. Yang has a 75.6% average return when recommending HZNP, and is ranked #275 out of 3692 analysts.
All the 7 analysts polled by TipRanks rate Horizon Pharma stock a Buy. With a downside potential of 0.8%, the stock’s consensus target price stands at $34.29.