Valeant Pharmaceuticals Rating Reiterated by Paradigm Capital (VRX)
Valeant Pharmaceuticals (NYSE: VRX)‘s stock had its “buy” rating reiterated by investment analysts at Paradigm Capital in a note issued to investors on Thursday. They currently have a $35.00 target price on the stock, down from their previous target price of $83.00.
The analysts wrote, “We believe this is a positive acquisition for Valeant, demonstrating that its strategy remains viable as it continues to find complementary opportunities at fair prices. With this deal, Valeant is acquiring a dermatology business that should easily plug-and-play into its own infrastructure. Given the potential synergies from this integration, VRX appears to be paying a multiple of 4.0–4.9x, including synergies, which is at the low end of the 4.0–6.0x that we expect for acquisitions. At this price, we believe the deal is attractivebased on the accretion it provides, as $0.20 of additional cash EPS represents ~$600M in additional market cap at current market multiples and ~$760M in value at our price target multiple. As a result, we believe management has found another good fit for the company at an attractive price and we expect it to finalize additional deals before year-end.”
Shares of Valeant Pharmaceuticals (NYSE: VRX) traded up 0.55% during mid-day trading on Thursday, hitting $73.73. Valeant Pharmaceuticals has a 52 week low of $42.47 and a 52 week high of $74.67. The stock’s 50-day moving average is currently $68.05. The company’s market cap is $22.544 billion.
Valeant Pharmaceuticals (NYSE: VRX) last released its earnings data on Thursday, February 28th. The company reported $1.34 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.21 by $0.13. The company had revenue of $946.67 million for the quarter, compared to the consensus estimate of $654.17 million. During the same quarter last year, the company posted $0.94 earnings per share. Valeant Pharmaceuticals’s revenue was up 43.3% compared to the same quarter last year.
VRX has been the subject of a number of other recent research reports. Analysts at Deutsche Bank reiterated a “buy” rating on shares of Valeant Pharmaceuticals in a research note to investors on Thursday. They now have a $83.00 price target on the stock, up previously from $77.00. Separately, analysts at RBC Capital raised their price target on shares of Valeant Pharmaceuticals from $70.00 to $80.00 in a research note to investors on Thursday. Finally, analysts at Jefferies Group reiterated a “buy” rating on shares of Valeant Pharmaceuticals in a research note to investors on Wednesday.
Four research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. Valeant Pharmaceuticals presently has a consensus rating of “Buy” and a consensus price target of $70.29.
Valeant Pharmaceuticals International, Inc., formerly Biovail Corporation, is a specialty pharmaceutical company that develops, manufactures and markets a range of pharmaceutical products.
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