UBS Maintains a 'Buy' on Valeant Pharmaceuticals (VRX); Deal Supports Thesis; Stock Move Justified
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Price: $23.40 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Buy' on Valeant Pharmaceuticals (NYSE: VRX) price target of $70.00 (from $64.00).
Analyst, Marc Goo dman, said, "How we’re thinking about the deal – Model updates We assume (1) modest changes for a few prods (lower Zyclara and Renova sales), (2) divestiture of Carac (Zyclara overlap) to be conservative, (3) Ammonul & Buphenyl are called away in 2013, (4) a tax rate of 7% in 2013 and 6% in 2014 (our ests. prev. were ~9% and ~12%), (5) 6.5% debt rate (we prev used 5%) and (6) synergies of $225M in 2014 and $250M in 2015. We wouldn’t be surprised if synergies go closer to $300M from just SG&A/R&D and since both cos use many of the same CMOs, mgt may be able to renegotiate contracts to drive additional upside."
Raising FY13/14 EPS estimates.
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 $58.78 yesterday.
Analyst, Marc Goo dman, said, "How we’re thinking about the deal – Model updates We assume (1) modest changes for a few prods (lower Zyclara and Renova sales), (2) divestiture of Carac (Zyclara overlap) to be conservative, (3) Ammonul & Buphenyl are called away in 2013, (4) a tax rate of 7% in 2013 and 6% in 2014 (our ests. prev. were ~9% and ~12%), (5) 6.5% debt rate (we prev used 5%) and (6) synergies of $225M in 2014 and $250M in 2015. We wouldn’t be surprised if synergies go closer to $300M from just SG&A/R&D and since both cos use many of the same CMOs, mgt may be able to renegotiate contracts to drive additional upside."
Raising FY13/14 EPS estimates.
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 $58.78 yesterday.
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