Analyst: Omrix logical acquisition target for Johnson & Johnson
Brean Murray Carret gave the company a “Buy” recommendation at a target price of $35.
Gali Weinreb 21 Nov 06 20:04
Omrix Biopharmaceuticals Ltd. (Nasdaq:OMRI) rose 3% yesterday after Brean Murray Carret & Co. LLC began coverage of the company with a “Buy” recommendation at a target price of $35. Omrix closed at $29.30 yesterday.
Brean Murray Carret analyst Jonathan Aschoff cited Omrix’s marketing partnership on Evicel and Crosseal with Johnson & Johnson (NYSE:JNJ) as a key reason for the rating. He added that Omrix could be a possible buyout target. "Since we view Omrix's business as relatively low-risk and on the brink of such robust revenue growth, it therefore makes for a very rational acquisition by J&J," he wrote.
Johnson & Johnson already made an offer for the company before it went public in April, but the parties failed to agree on terms, and Omrix decided to go public.
Omrix has a market cap of $444 million, up from $230 million at its IPO.
Published by Globes [online], Israel business news - www.globes.co.il - on November 21, 2006
