Valeant Pharma (VRX) Price Target Lowered to $45 at TD Securities
TD Securities earlier maintained a Hold rating on Valeant Pharmaceuticals (NYSE: VRX) and lowered its price target to $45.00 (from $110.00). The change follows updated guidance announced yesterday.
Analyst Lennox Gibbs said, "This latest revision layers on to an already protracted decline in investor confidence. We believe that it could take at least until the Q1/16 release to sufficiently validate Valeant’s 2016/2017 earnings prospects. We are raising our risk rating to SPECULATIVE from High given reduced confidence in the EPS outlook and the company's ability to de-leverage."
"Valeant appears to be caught in a vortex of challenges — including market access hurdles, channel disruption, credibility, and compliance issues," added the analyst. "Although we remain positive regarding the quality of Valeant’s pharmaceutical assets, we expect the near-term uncertainty to obscure the long-term earnings potential of those franchises. Moreover, shares remain vulnerable to new unknowns and headline risk."
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Shares of Valeant Pharmaceuticals closed at $33.51 yesterday.