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."

For an analyst ratings summary and ratings history on Allergen click here. For more ratings news on Allergen click here.

Shares of Allergen closed at $236.55 yesterday.

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