2020-06-08 05:09:02 GILD Gilead
AstraZeneca
06/08/20 06/0805:09 06/08/2005:09 | Gilead shares worth at least $120 in takeover by AstraZeneca, says Piper JaffrayAs reported over the weekend by Bloomberg, AstraZeneca (AZN) made a preliminary approach to Gilead Sciences (GILD) last month regarding a potential merger, Piper Jaffray analyst Tyler Van Buren tells investors in a research note. Apparently, Gilead has discussed the idea with advisors, but has not proceeded and the companies aren't in formal talks, adds the analyst, who admits he has no idea if talks will move forward. However, Van Buren believes a merger at a "significant premium" would create more value in the near-term for Gilead shareholders when compared to its current organic prospects. The analyst thinks a premium above Celgene's 54%, or $120-plus per Gilead share, "would be required at minimum." A "simple" discounted free cash flow exercise gets Van Buren to $120 per Gilead share in a takeover, excluding AstraZeneca synergies. A "justified premium" to the multiple paid for Celgene gets the analyst to $117-$127 per share. He keeps an Overweight rating on Gilead with a $90 price target. The stock in premarket trading is up 3% to $79.38. Gilead
AstraZeneca
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Fly Intel: Top five weekend stock stories »
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