Piper Jaffray Remains Sidelined on Allergan (AGN) Following Mixed 2Q

August 9, 2016 9:08 AM EDT
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Price: $214.78 --0%

Rating Summary:
    18 Buy, 13 Hold, 2 Sell

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Today's Overall Ratings:
    Up: 9 | Down: 12 | New: 44
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Piper Jaffray maintained a Neutral rating on Allergen (NYSE: AGN), and cut the price target to $227.00 (from $236.00), following the company's 2Q earnings report. AGN reported non-GAAP diluted EPS of $3.35 on revenue of $3.68B, compared to Street estimates of $3.33 and $3.97B, respectively.

Analyst David Amsellem commented, "Allergan reported 2Q16 non-GAAP diluted EPS of $3.35 on revenue of $3.68B, compared to Street estimates of $3.33 and $3.97B, respectively. The growth trajectory for key topline drivers, namely Botox, Linzess and Restasis, continues to be impressive. That said, we continue to view AGN’s commercial portfolio as a mixed bag (i.e., significant exposure to mature/declining assets beyond new launches and AGN’s top 4-5 sellers). We believe that AGN shares, at a 2017 P/E of 14x our estimate, already reflect significant contribution from new launches and that at current levels, AGN will need to execute on the pipeline as well as acquisitions/in-licensings in order to drive significant value creation (i.e., providing more visibility on a double-digit long-term EPS CAGR). We reiterate our Neutral rating and are slightly lowering our PT to $227 from $236 (owing to modest estimate revisions and unchanged 13x target multiple)."

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 $248.31 yesterday.

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