Piper Jaffray Downgrades Allergen (AGN) to Neutral

Piper Jaffray downgraded Allergen (NYSE: AGN) from Overweight to Neutral with a price target of $238.00 (from $311.00), saying the valuation premium looks excessive.

Analyst David Amsellem commented, "We are downgrading Allergan to Neutral from Overweight and lowering our PT to $238 from $311. We took a close look at U.S. prescription (Rx) volumes across the commercial portfolio, as well as pricing action over the past two years for over 75 products. Though there are undoubtedly a number of high-quality, moderate-to-high growth assets, and though AGN’s approach to pricing action has in our view not been egregious, we nonetheless believe there are enough items of concern that ultimately call into question the company’s ability to deliver a long-term earnings CAGR that is in the double digits (and all the more so if key pipeline shots-on-goal do not bear fruit). As such, we believe that though a valuation premium to AGN’s specialty pharma peers is reasonable, the current premium is excessive."

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

Shares of Allergen closed at $217.16 yesterday.

You May Also Be Interested In

• H.C. Wainwright Downgrades Argo Blockchain ADR (ARBK) to Neutral
• EQT Corp. (EQT) PT Raised to $43 at Mizuho
• Range Resources (RRC) PT Raised to $41 at Mizuho