Valeant Pharma (VRX): Was Cautious, Investigation Doesn't Help - Mizuho
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
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
- BofA/Merrill Lynch Upgrades CF Industries (CF) to Buy, Says "Consensus Estimates Now Beatable"
- M&T Bank (MTB) PT Raised to $165 at FBR Capital Following 4Q Beat
- Herbalife (HLF) Provides Q4, FY17 Guidance in Memorandum for $1.325B Credit Facility; Lowers FY17 Sales Guidance
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!