Company Press Release
Robert M. Cohen & Co. Initiates Coverage of IVAX; Analyst Issues Speculative Buy Rating, $15 Price Target
GREAT NECK, N.Y., Nov. 6 /PRNewswire/ -- Robert M. Cohen & Co. analyst Keith R. Bossey initiated coverage of IVAX Corporation (Amex:IVX) with a speculative buy rating and set an 18-month price target of $15 per share.
IVAX, a holding company with subsidiaries engaged in research, development, manufacture and marketing of generic and branded pharmaceuticals, has seen severe tightening of its valuation multiples brought on by disappointing year-over-year performance in 1996 and 1997 fiscal years, according to Bossey.
However, the company's management has refocused its endeavors to bring costs in line as well as formulate a new strategy for the changing market place, Bossey noted.
In addition, Bossey noted, ''The drug industry average price/sales multiple is 11.07. A sampling of a handful of generic drug manufacturers produce an average price/sales multiple of 4. Eventually, as IVAX regains its leadership position, the stock should trade somewhere between these two numbers.''
SOURCE Robert M. Cohen & Co. |
