RBC Sees Lower Guidance at Valeant (VRX); PT Trimmed to $35
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RBC Capital analyst Douglas Miehm reiterated his Sector Perform rating on Valeant Pharmaceuticals (NYSE: VRX) while trimming his price target to $35.00 (from $36.00), saying guidance may be lowered.
"Following a reiteration of guidance in August, we believe management may lower guidance due to increased operating expenses associated with recovery of the business," Miehm commented. "While we believe the Street is expecting lowered guidance, recent share price weakness has likely largely discounted this likelihood. We have revised our forecasts to reflect timing of the derm recovery and higher incremental operating expenses."
They anticipate that Valeant will lower its 2016 guidance to ~$9.7–9.9B in revenue (from $9.9–10.1B), $4.5–4.7B in Adj. EBITDA (from $4.8–4.95B), and $6.25–6.55 in Adj. EPS (from $6.60–7.00). The firm's revised 2016 forecasts include $9.84B in revenue, $4.61B in Adj. EBITDA, and $6.26 in Adj. EPS.
Shares of Valeant Pharmaceuticals closed at $22.94 yesterday.
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