(Updated - November 2, 2015 8:42 AM EST)

Goldman Sachs downgraded Valeant Pharmaceuticals (NYSE: VRX) from Buy to Neutral with a price target of $122 (prior $180). Analyst Gary Nachman thinks re-establishing confidence will be a long road.

"Given the events that have transpired very rapidly in recent weeks that have raised many questions about certain aspects of VRX’s business model, we have less confidence the market will reward the stock anytime soon without clarity as to the path forward. We move to the sidelines until there is further visibility on how management will repair the reputational damage to the company, as well as grow its business effectively in this increasingly challenging environment," said Nachman.

"We continue to believe that longer term VRX’s fundamentals could justify a much higher valuation, but risk/reward in the stock in the near-to-medium term is less clear. We expect a much longer road than we previously thought for the dust to settle and for VRX to be able to regain enough investor confidence to attract a sufficient amount of new money into the stock," added the analyst.

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 $93.77 yesterday.