Human Genome ($HGSI) RBC says current GSK bid for Human Genome undervalues sum of parts over long-run ($14.64)
- The firm sees $15-23 fair value but notes that a CVR might make sense for GSK if no compromise can be made. RBC believes GSK could raise its bid at least once but assumes that HGSI wants the higher end of RBC's valuation range. However, the firm notes there is no guarantee GSK will raise its bid and they don't see any other serious bidders that would bid materially higher.
- Rating is sector perform for HGSI. Target raised to $15 from $10.
- Analyst is Michael J. Yee