Nomura Securities Starts Valeant Pharmaceuticals (VRX) at Buy

Nomura Securities initiates coverage on Valeant Pharmaceuticals (NYSE: VRX) with a Buy rating and a price target of $290.00.

Analyst Shibani Malhotra commented, "We initiate coverage of Valeant Pharmaceuticals International (VRX) with a Buy rating and a $290 target price based on our DCF analysis. Despite the impressive 46.4% YTD (9/24/15) return on VRX (versus a 6.2% decline for the S&P 500), Valeant remains a controversial company that polarizes investors, mainly as the company is misunderstood, in our view. Since CEO J. Michael Pearson joined the company in 2008, the debate around Valeant has centered on the company’s aggressive pace of M&A, which some perceive as an unsustainable ‘roll up’ strategy. We disagree. After conducting extensive due diligence, we have concluded that Valeant management’s core competency is its unrelenting focus on allocating capital to areas that earn the highest return for shareholders. While M&A may be an important driver of shareholder value at present, we expect this will change as the healthcare environment continues to evolve. We are confident that Valeant will, in turn, adapt its strategy swiftly and appropriately."

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 $199.47 yesterday.

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