Celgene stock downgraded to neutral at UBS


2019-04-02 20:34:00 MarketWatch


By Analysts at UBS downgraded shares of Celgene Corp. on Monday to neutral from buy, but raised their stock price target to $102 from $94. On Friday, Institutional Shareholder Services (ISS) and Glass Lewis & Co. both put out statements recommending that Bristol-Myers Squibb Co. BMY, -0.46% shareholders vote to approve the company's $74 billion bid to buy Celgene. Activist investor Starboard Value LP also dropped opposition to the deal. "We see an increasingly high probability after Friday's updates that Bristol's acquisition of Celgene will be completed," UBS analysts, led by Carter Gould, wrote. Gould said a vote in favor of the deal was increasingly likely, and UBS would now base its price target on the proposed deal terms rather than net present value. Under the terms of the deal, Celgene shareholders will receive $50 in cash, one Bristol-Myers share and one tradeable contingent value right (CRV), which will entitle each shareholder to receive a one-time payout of $9 if three pipeline drugs win FDA approval. Gould said he values the CRV around $4 based on the probability of those drugs getting approved. That, along with Bristol-Meyers shares closing at around $48 on Friday, led to the $102 price target, he said. "Given that this implies ~7% potential upside to Friday's close, we are moving to a Neutral rating," he added. Shares of Celgene have shot up 47% in the year to date, while Bristol-Myers has fallen 8%. The S&P 500 SPX, +0.73% has gained 13.8%.
由。 瑞银( UBS )分析师下调了新基(Celgene) Corp .的股价。 CELG ,-0.31% 周一从买入转为中性,但将其股价目标从94美元上调至102美元。上周五,机构股东服务公司( ISS )和 GlassLewis & Co .均发表声明,建议百时美施贵宝公司( Bristol-MyersSquibbCo .)上市。 BMY ,-0.46% 股东投票赞成该公司以740亿美元收购新基(Celgene)。激进投资者 Starboard Value LP 也对这笔交易投了反对票。“在周五的更新之后,我们看到布里斯托尔收购新基(Celgene)的可能性越来越高,”以卡特·古尔德为首的瑞银分析师写道。古尔德表示,投票支持该交易的可能性越来越大,瑞银现在将根据拟议的交易条款而不是净现值来确定其价格目标。根据交易条款,新基(Celgene)股东将获得50美元现金、1百时美施贵宝股份和1个可交易或有价值权利( CRV ),这将使每个股东有权获得一次性支付9美元,如果三个管道药物获得 FDA 批准。古尔德说,根据这些药物获得批准的可能性,他对 CRV 的估价在4美元左右。他说,加上上周五百时美施贵宝股价收于约48美元,这导致了102美元的价格目标。“考虑到这意味着周五收盘价有可能上涨7%,我们将转向中性评级,”他补充道。今年迄今为止,新基(Celgene)的股价已飙升47%,而百时美施贵宝的股价则下跌了8%。标准普尔500指数 SPX ,+0.73% 上涨了13.8%。