JP Morgan Comments On Mylan Inc; Raises PT To $28

Based on JP Morgan's analysis of Mylan's MYL portfolio of upcoming generic launches, it continues to believe 2011 guidance appears highly achievable and more importantly that 2012 consensus estimates appear conservative. JP Morgan is modestly increasing its 2012 EPS estimate to $2.44 and raising the PT to $28. With a highly diversified business that it believes is capable of delivering high-teens EPS growth over the next several years, JP Morgan reiterates its OW rating on MYL shares. JP Morgan still believes that the company's international business represents a significant long-term opportunity. JPM believes that Mylan will benefit from improving price comparisons as it move through 2011, from an uptick in new generic introductions over the next several years and from increased volumes as more EU countries look to increase generic utilization over time. JP Morgan estimates these launches alone could represent roughly $0.10 and $0.50-0.60 of incremental EPS in 2011 and 2012, respectively. As with any generic business, this growth will be partially offset by modest declines in the company's legacy business. JP Morgan has a $28 PT and Overweight rating on MYL MYL closed Friday at $23.44