Ahead of the Bell: Adams Respiratory

A Deutsche Bank analyst said Tuesday that shares of Adams Respiratory Therapeutics Inc., which accepted a buyout offer Monday, should continue to rise because of the value of the company's over-the-counter drugs.

Adams, which makes products including the expectorant Mucinex and Delsym cough syrup, agreed to be bought by Reckitt Benckiser Group PLC for $2.3 billion, or $60 per share. Reckitt is based in Britain, and makes Lysol disinfectant and Woolite detergent.

Shares of Chester, N.J.-based Adams surged 35.8 percent Monday, closing at an all-time high of $59.30.

Analyst David Steinberg kept a "Buy" rating on the stock, saying Adams is a leader in over-the-counter brands, and its revenue should keep growing because Reckitt is planning to sell Mucinex in overseas markets. He raised his price target to $60 per share from $53, noting that Reckitt paid a 37 percent premium on Adams shares.

"While the multiple offered for Adams is at a sizable premium, we view that it is warranted given that Adams' brands are growing in excess of three to four times that of other recently acquired over-the-counter assets," he said.