Jefferies Boosts PT on Valeant (VRX) to $75; FY12 Outlook Surprises to Upside
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies lifts its price target on Valeant Pharmaceuticals (NYSE: VRX) from $64 to $75 following fiscal 2012 guidance. The firm maintained a Buy rating on the stock
Last Friday, Valeant guided to $3.1 billion to $3.4 billion in sales, and EPS of $3.95 to $4.20. Both views beat Jefferies and the Street. Valeant also aimed for a $50 billion market cap by the end of 2013.
Jefferies thinks Valeant will continue to aim for 10 percent of organic growth annually, despite not issuing guidance. Though its an important measure, and one that's been focused on by bears of Valeant, Jefferies says that management has been more focused on optimizing cash flow. So, should Valeant report that organic growth rose only 7 percent instead of 10 percent in any given year, the firm would view this as immaterial pending the success of other measures.
On regional focus, Jefferies said there was some good and bad, commenting: "We were surprised that Latin America guidance was so low but this is an area for future acquisitions. We were also surprised US Neuro was so low, but since this is declining, better to have it be lower and less of a drag. US derm was a bright spot, as was Australia and the new regions of Asia and South Africa, but we must have been underestimating the impact from iNOVA. Europe was in-line with our forecasts."
Valeant is up an additional 2.4 percent Monday.
For an analyst ratings summary and ratings history on Valeant Pharmaceuticals click here. For more ratings news on Valeant Pharmaceuticals click here.
Shares of Valeant Pharmaceuticals closed at $47.48 yesterday.
Last Friday, Valeant guided to $3.1 billion to $3.4 billion in sales, and EPS of $3.95 to $4.20. Both views beat Jefferies and the Street. Valeant also aimed for a $50 billion market cap by the end of 2013.
Jefferies thinks Valeant will continue to aim for 10 percent of organic growth annually, despite not issuing guidance. Though its an important measure, and one that's been focused on by bears of Valeant, Jefferies says that management has been more focused on optimizing cash flow. So, should Valeant report that organic growth rose only 7 percent instead of 10 percent in any given year, the firm would view this as immaterial pending the success of other measures.
On regional focus, Jefferies said there was some good and bad, commenting: "We were surprised that Latin America guidance was so low but this is an area for future acquisitions. We were also surprised US Neuro was so low, but since this is declining, better to have it be lower and less of a drag. US derm was a bright spot, as was Australia and the new regions of Asia and South Africa, but we must have been underestimating the impact from iNOVA. Europe was in-line with our forecasts."
Valeant is up an additional 2.4 percent Monday.
For an analyst ratings summary and ratings history on Valeant Pharmaceuticals click here. For more ratings news on Valeant Pharmaceuticals click here.
Shares of Valeant Pharmaceuticals closed at $47.48 yesterday.
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