Deutsche Bank Resumes Valeant Pharmaceuticals (VRX) at Hold
- Apple (AAPL) Tops Q4 EPS by 2c; Issues Solid Outlook
- Wall Street slips on earnings; Apple falls late after results
- Chipotle Mexican Grill (CMG) Posts Q3 EPS of $0.27; Comps Miss Views; Additional Stock Buyback Approved
- Pandora (P) Misses Q3 EPS by 1c, Q4 Revenue Guidance Falls Short
- After-Hours Movers 10/25: (OGXI) (AKAM) (VRTX) Higher; (EW) (NUVA) (CMG) (AAPL) Lower (more...)
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Deutsche Bank resumed coverage on Valeant Pharmaceuticals (NYSE: VRX) with a Hold rating and a price target of $30. Analyst Gregg Gilbert sees a rebound in dermatology revenue in the second half of the year.
"We are re-instating coverage of VRX with a Hold rating and $30 price target based on our new, preliminary model. We say preliminary when referencing our model because VRX will be reporting on a new segment structure starting with 3Q results in late Oct / early Nov, and other major changes may occur, including but not limited to changes in debt structure, material divestments of products and geographies, and a new outlook from a recently-hired CFO that we believe will want to instill a strong 'meet or beat' culture when it comes to guidance," said Gilbert.
The analyst continued, "We believe that our new model has a conservative slant overall, as it does not include new product flow from the pipeline and assumes a relatively negative assumption for the duration of the company’s largest product, Xifaxan. On the other hand, we do not factor in any fines for ongoing investigations and lawsuits, and we assume that revenue for the dermatology business begins to rebound in 2H16 and into ’17."
Gilbert added, "For VRX’s largest product Xifaxan, we model sales of $844mn in 2016 (24% growth) and $953mn in 2017 (13% growth), which reflects continued solid but decelerating volume growth. For the dermatology segment, we model a significant increase in sales in 2H16 (vs. 1H16) to reflect an improvement in sales per Rx related to VRX’s enhancements to the Walgreens access program (implemented in early August)."
Shares of Valeant Pharmaceuticals closed at $27.10 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Baxter (BAX) PT, Estimates Raised at Evercore ISI
- UPDATE: Chardan Capital Markets Starts Clovis Oncology (CLVS) at 'Sell' With Price Target of $15
- UPDATE: Valeant Pharma (VRX) Moves Off Lows on Bill Miller Comments
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!