Valeant Pharma (VRX): Was Cautious, Investigation Doesn't Help - Mizuho
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Mizuho Securities analyst, Irina Koffler, reiterated her Neutral rating on shares of Valeant Pharmaceuticals (NYSE: VRX) after the stock sold off on news of an ongoing (not new) criminal investigation.
The analyst was cautious heading into the 3Q:16 earnings report because she expects management to cut 2016 guidance and the longer term outlook. However, the outlook is not dire.
Following the Aug 23 amendment, VRX must maintain an interest coverage ratio of 2:1, down from 3:1 previously. Based on updated estimates of $1.66B in interest expense in FY:16, the analyst believes VRX needs to generate FY:16 EBITDA of $3.32B. This is considerably below guidance of $4.8-$4.95B.
No change to the price target of $25.
Shares of Valeant Pharmaceuticals closed at $17.84 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Cuts Price Target on Restoration Hardware (RH) to $34 Following 3Q
- Oppenheimer Raises Price Target on CarMax (KMX) to $72 Ahead of 3Q
- Ocean Power Technologies (OPTT) Reports Q2 Loss of $0.25/Share
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change
Related EntitiesEarnings, Irina Koffler
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!