Guggenheim Reiterates Buy on Allergan (AGN) Following Updated Guidance

Guggenheim reiterated a Buy rating and $400.00 price target on Allergen (NYSE: AGN) following updated 2H15 guidance. The guidance excludes the generics business AGN plans to divest to TEVA (NEUTRAL, $56.90) by 1Q16, but includes all of AGN's interest expense.

Analyst Louise Chen commented, "After the close on 9/28/15, AGN presented 2H15 guidance for continuing operations, which excludes the generics business AGN plans to divest to TEVA (NEUTRAL, $56.90) by 1Q16, but includes all of AGN's interest expense. AGN also provided its longer-term growth objectives without the generics business. The timing of the announcement was as expected, and the focus remains on AGN's capital allocation. We believe the general expectation by the Street is that AGN will take the cash (~$36B, per the company) from the generics sale to pay down debt and to potentially do a large biotech deal (1Q16+). Therefore, post the guidance update and outlook for '15+, we continue to think upward earnings revisions (synergies, taxes, launches, M&A) and multiple expansion (brand drug sales and pipeline) should drive shares higher."

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 $254.87 yesterday.

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