UPDATE: Piper Jaffray Downgrades Valeant Pharmaceuticals (VRX) to Underweight
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(Updated - March 15, 2016 11:20 AM EDT)
Piper Jaffray downgraded Valeant Pharmaceuticals (NYSE: VRX) from Neutral to Underweight. Analyst David Amsellem called Valeant a "broken company" and noted trouble spots across a number of segments.
Amsellem explained the downgrade, "VRX reported 4Q15 adjusted revenue and EPS of $2.8B and $2.50, respectively, but more importantly issued 2016 guidance that was well below the ranges that management had withdrawn on 2/28/16. Further, the ever-shifting commentary from VRX surrounding a number of segments in our view suggests that management simply does not have a handle on the health of its own business. Given the persistent uncertainty over the trajectory of a number of key segments, along with the reality of high debt levels and specifically myriad debt covenants (specifically, financial reporting covenants in the near-term; i.e., the specter of multiple defaults if the company cannot file its 10K in the near-term), we are moving to an Underweight rating from a Neutral. Our PT continues to be suspended given the absence of audited financials."
Shares of Valeant Pharmaceuticals closed at $69.04 yesterday.
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