Valeant Pharmaceuticals (VRX) PT Lowered to $19 at Deutsche Bank

Deutsche Bank analyst Gregg Gilbert lowered his price target on Valeant Pharmaceuticals (NYSE: VRX) to $19.00 (from $20.00) while maintaining a Hold rating.

Gilbert commented, "Lowered EPS on higher op ex, interest expense We updated our model following the company’s 4Q results and 10-K filing, our meetings with management last week, and to reflect preliminary assumptions for the planned debt refinancing. Overall, we lowered our EPS estimates based primarily on higher spending and interest expense assumptions (see below), which reduced our DCF-derived PT to $19 (from $20). While our target implies material upside from the current stock price, we are sticking with our Hold rating pending greater visibility on improved demand trends for Xifaxan and other core assets, stabilization of the Dermatology business, and further steps to address the debt load and strengthen the balance sheet. We are encouraged that the company has begun to deliver on the expectations that it has set (as of 4Q), a theme we hope to see continue in the quarters ahead."

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