Allergen's (AGN) Stand-Alone Price Target is $282 at Deutsche Bank

Deutsche Bank analsyt Gregg Gilbert said his stand-alone price target for Allergen (NYSE: AGN) is $282. Comments follow reports its deal with Pfizer (NYSE: PFE) could be in jeopardy given the U.S. Treasury's changes targeting tax inversions.

"Recall that we have been using a deal-driven price target methodology for AGN (PFE @ $30 x 11.3 shares = $339 for AGN). If we were to shift back to a stand-alone price target methodology based on our updated model (see below for tweaks), our one-year target would approximate $282," said Gilbert.

"Our model assumes that AGN sells its generics business to TEVA by the end of June, but it is important to note that our stand-alone model/target (1) does not credit AGN ahead of time for what would be a strong and under-levered balance sheet, and (2) does not factor in a potential restructuring that could reduce operating expenses and boost EPS," continued the analyst.

Gilbert added, "On the other hand, we would note that continued stand-alone execution will be key for AGN but may be somewhat more challenging in light of what has likely been a distracted employee base. With investor sentiment at poor levels for the space, and the natural skepticism that may follow when a company had agreed to sell itself, some investors may take a more wait-and-see approach."

Deutsche Bank has a Buy rating and $339 price target on the stock.

For an analyst ratings summary and ratings history on Allergen click here. For more ratings news on Allergen click here.

Shares of Allergen closed at $277.55 yesterday.

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