Guggenheim Reiterates Buy on Valeant Pharma (VRX) Expecting Approval for Xifaxan IBS-D

Guggenheim reiterates a Buy rating and $250 price target on Valeant Pharmaceuticals (NYSE: VRX) expecting approval for Xifaxan IBS-D.

Analyst Louise Chen commented, "We expect VRX to receive approval for Xifaxan IBS-D on or around its PDUFA date of 5/28/15. This potential opportunity underscores that VRX's pipeline is underappreciated and represents upside to VRX's '15 guidance. Therefore, we continue to think multiple expansion and upward earnings revisions will drive VRX shares higher. VRX's forward P/E multiple should expand to 20x P/E from 15x, in our view. We believe VRX deserves to trade at a higher P/E multiple because it has a similar organic growth rate to companies that trade at ~20x P/E, such as AGN (acquired), ACL (acquired), and PRGO (BUY, $195.75)."

For an analyst ratings summary and ratings history on Valeant Pharmaceuticals click here. For more ratings news on Valeant Pharmaceuticals click here.

Shares of Valeant Pharmaceuticals closed at $235.31 yesterday.

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