Ligand price target raised to $190 from $167 at Oppenheimer

Oppenheimer analyst Leland Gershell raised the firm’s price target on Ligand (LGND) to $190 from $167 and keeps an Outperform rating on the shares. The firm notes Ligand shares have climbed 11% vs. XBI’s 9% following their mid-August capital raise likely driven by enthusiasm for the company’s model and a lower discount rate including 0.75% convertible debt. Ligand’s $460M convert offering yielded $385M net capital, and included a $45M bond hedge which eliminates dilution up to $294/share, along with $15M share repurchase. Management does not expect to change their rate of capital deployment, though Oppenheimer believes this cash balance allows management to be more opportunistic.