Mizuho Securities Raises Price Target on Depomed (DEPO) Following Starboard's Activism Announcement; Reiterates Neutral

Mizuho Securities reiterated a Neutral rating on DepoMed Inc (NASDAQ: DEPO), and raised the price target to $18.00 (from $14.00), following Starboard's activism announcement. Mizuho expects the stock to trade in a higher range after Starboard Value disclosed its position in DEPO last week. After touching base with HZNP and DEPO management, and shareholders in both companies, Mizuho believes that a near-term takeout is unlikely.

Analyst Irina Koffler commented, "We are incorporating a 20% probability of company takeout into our DEPO valuation assumptions following Starboard's activism announcement. We expect a drawn-out battle but also acknowledge that this situation should provide support to the stock, even in the face of any weaknesses in the business. We raise our PT to $18 from $14 but reiterate our Neutral rating."

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

Shares of DepoMed Inc closed at $16.95 yesterday.

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