Yesterday we upgraded Zentiva to Buy from our previous Hold, with a target price of CZK1,334 per share. This upgrade is based on (i) the acquisition of Sicomed, (ii) a revision of Zentiva’s stand-alone projections upwards and (iii) the lock-up period of 120 days.
Separately, PPF, which recently bought a 10.4% stake in Zentiva, said that it may purchase additional shares in the company. Note that PPF and J&T recently bought 10.4% and 3.2% stakes in Zentiva respectively. Warburg Pincus has reduced its 48% stake in Zentiva to its current 20%.