Leerink Partners Cuts Price Target on Allergan (AGN) Following New U.S. Treasury Regulations
Leerink Partners maintained an Outperform rating on Allergen (NYSE: AGN), and cut the price target to $272.00 (from $340.00), following new U.S. Treasury regulations. The Treasury's temporary regulation regarding new tax inversion rules creates a risk to PFE (MP) - AGN closing.
Analyst Jason Gerberry commented, "While yesterday's Treasury Notice poses significant risk to the PFE-AGN deal, we remain OP-rated on AGN stand-alone. We are reducing our 1QE to reflect seasonal weakness, but our full-year sales ests remain relatively unchanged. Our updated '17E EPS of $17.26 reflects ~$15B debt pay down and resumption of restructuring in '17. Our $272/shr PT (from $340) now values AGN as a stand-alone. With a healthy balance sheet, high barrier to entry cosmetic biz, and no major generic headwinds, we view the setup on AGN as favorable."
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Shares of Allergen closed at $236.55 yesterday.