ABMD - Abiomed unlikely to see higher bid given size of J&J premium - analyst

Abiomed ( NASDAQ: ABMD ) is unlikely to see a higher bid that Johnson & Johnson's ( NYSE: JNJ ) $16.6 billion deal, according to BTIG.

The 50% premium offered and limited number of companies that could potentially do a deal of the size makes another bid unlikely, BTIG analyst Marie Thibault wrote in note earlier Tuesday.

"The size and the target of this deal catches us offguard," Thibault, who has a neutral rating on Abiomed ( ABMD ) wrote in the note. "However, we do think ABMD is a high-quality target and fits JNJ's businesses and company culture well."

The deal includes a contingent value right, or CVR, where ABMD holders can receive up to $35.00 per share in cash if certain milestones are reached.

Thilbault wrote on the CVR that the $3.7 billion in net sales target for period from Q2 2027 through Q2 2028 is "doable, but not a certainty" as it represents a ~23% CAGR from today and BTIG expected a mid-teens CAGR for standalone ABMD.

Earlier Tuesday, CNBC's David Faber reported that Johnson & Johnson ( JNJ ) was said to have approached Abiomed ( ABMD ) about a transaction before a deal was eventually struck.

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