Verona Pharma, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Tara Bancroft from TD Cowen downgraded the rating on the stock to a Hold and gave it a $107.00 price target.
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Tara Bancroft’s rating is based on the recent acquisition agreement between Merck and Verona Pharma, where Merck will acquire Verona for $107 per ADS, which represents a significant premium over the recent average and closing prices. This acquisition price reflects Verona’s substantial potential and aligns with similar transactions in the industry.
Given the agreed acquisition terms and the expected closure of the deal in the fourth quarter, Bancroft does not foresee any regulatory hurdles or competing offers. Consequently, she downgraded the stock to a Hold rating, as the acquisition price effectively caps the stock’s upside potential in the near term.
In another report released today, Canaccord Genuity also downgraded the stock to a Hold with a $107.00 price target.