UPDATE: Piper Jaffray Downgrades Valeant Pharmaceuticals (VRX) to Underweight

March 15, 2016 11:15 AM EDT
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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and $2.50, respectively, but more importantly issued 2016 guidance that was well below the ranges that management had withdrawn on 2/28/16.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."

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 $69.04 yesterday.

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