Rodman & Renshaw Downgrades Valeant Pharmaceuticals (VRX) to Neutral
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Rodman & Renshaw downgraded Valeant Pharmaceuticals (NYSE: VRX) from Buy to Neutral with a price target of $23.00 (from $81.00). The change follows its Q3 revenue and earnings miss.
Analyst Raghuram Selvaraju said, "In its financial results for 3Q16 reported earlier this week, Valeant reported adjusted cash EPS of $1.55 vs. our projection of $1.71, along with revenues of $2.48B vs. our projection of $2.53B for the quarter. The tone struck on the conference call was markedly different from that observed in only the previous quarter, with management indicating expectations for a sequential decline not only for the final quarter of 2016—traditionally a seasonally strong one for the company—but also, more disturbingly, for 2017 as well. Since we cannot forecast when the company might return to growth, and given the continuing litany of risks that Valeant faces, including ongoing legal challenges, subpoenas, regulatory warning letters, and possible criminal investigations of its former executives, we believe that the prudent move would be to step to the sidelines at this juncture."
Shares of Valeant Pharmaceuticals closed at $16.09 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
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