Roth Capital Cuts Price Target on Depomed (DEPO) as Horizon Pharma (HZNP) Trades Down

Roth Capital maintained a Buy rating on DepoMed Inc (NASDAQ: DEPO), and cut the price target to $21.00 (from $33.00), as potential acquirer, Horizon Pharma (NASDAQ: HZNP), shares takes a material hit. Analyst Scott Henry believes that the deal no longer provides a material premium and shareholders should consider the company as a stand alone vehicle.

Henry commented, "DEPO shares are down significantly as the currency of a potential acquirer (HZNP shares) has taken a material hit. In our opinion, the deal no longer provides a material premium and shareholders should consider the company as a stand alone vehicle (barring a significant change in deal terms or HZNP valuation). We would, however, be buyers as a stand alone entity as the fundamentals for Nucynta are starting to show strong positive momentum. PT reduced to $21/share."

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 $15.50 yesterday.

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