Zoetis Could Get ~$60/Shr, May Fall Up to 20% If No Deal: BMO
2015-06-26 11:02:08.667 GMT
By Cristin Flanagan
(Bloomberg) -- Timing of possible Valeant acquisition of
Zoetis “surprising” as VRX is still “digesting” Salix,
writes BMO analyst Alex Arfaei, ZTS could fall 15%-20% if no
deal materializes.
* A $60/shr takeout offer for ZTS would correspond to ~6.5x
2016 rev. less net debt; such a deal wouldn’t be highly
accretive for VRX
* William Blair analyst John Kreger cautions investors, ZTS
trading at 18.7x 2016 Ebitda est., while recent M&As in
animal health have been at 15x-22x Ebitda
* Analyst calculates takeout could be at $53-$66
* Likelihood of a ZTS buy-out “is relatively low,” says
Piper Jaffray’s Kevin Ellich, ZTS may return most of yday’s
gains if “nothing pans out”
* NOTE: Yday, Zoetis Shares Surge After Report of Valeant
Buyout Approach
* ZTS closed at $55.38 yday, bid/ask $54.00/$56.98
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Joshua Fineman in New York.
To contact the reporter on this story:
Cristin Flanagan in New York at +1-212-617-8919 or
cflanagan1@bloomberg.net
To contact the editors responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Cristin Flanagan
2015-06-26 11:02:08.667 GMT
By Cristin Flanagan
(Bloomberg) -- Timing of possible Valeant acquisition of
Zoetis “surprising” as VRX is still “digesting” Salix,
writes BMO analyst Alex Arfaei, ZTS could fall 15%-20% if no
deal materializes.
* A $60/shr takeout offer for ZTS would correspond to ~6.5x
2016 rev. less net debt; such a deal wouldn’t be highly
accretive for VRX
* William Blair analyst John Kreger cautions investors, ZTS
trading at 18.7x 2016 Ebitda est., while recent M&As in
animal health have been at 15x-22x Ebitda
* Analyst calculates takeout could be at $53-$66
* Likelihood of a ZTS buy-out “is relatively low,” says
Piper Jaffray’s Kevin Ellich, ZTS may return most of yday’s
gains if “nothing pans out”
* NOTE: Yday, Zoetis Shares Surge After Report of Valeant
Buyout Approach
* ZTS closed at $55.38 yday, bid/ask $54.00/$56.98
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Joshua Fineman in New York.
To contact the reporter on this story:
Cristin Flanagan in New York at +1-212-617-8919 or
cflanagan1@bloomberg.net
To contact the editors responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Cristin Flanagan