Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is scheduled to report fourth-quarter financial results before the markets open on Tuesday, February 28. The consensus estimate is that the drug maker will report earnings per share of $1.21 on $2.34 billion in revenue.

Ahead of earnings, RBC Capital analyst Douglas Miehm lowers his price target for VRX from $29 to $22, while reiterating a Sector Perform rating on the stock. The new price target implies an upside of 38% from current levels.

Miehm stated, “We anticipate $2.37B in revenues, $1.05B in Adj. EBITDA, and $1.23 in Adj. EPS. We believe that the focus of VRX’s Q4/16 release and conference call will be on 2017 guidance and how much lower it will be relative to 2016 results… Lowering price target to $22 largely owing to reduced derm outlook. Following our forecast revisions, our price target declines to $22 from $29. This is largely due to our lower derm forecast and weaker overall outlook. We have also lowered our EBITDA multiple from 8.25x to 8.0x, as we believe Valeant has heightened risk due to ongoing government investigations.”

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Douglas Miehm has a yearly average return of -12.4% and a 38% success rate. Miehm has a -21.4% average return when recommending VRX, and is ranked #4208 out of 4430 analysts.

Out of the 10 analysts polled in the past 3 months, one rates Valeant stock a Buy, six rate the stock a Hold, while 3 recommend to Sell. With a return potential of 5%, the stock’s consensus target price stands at $16.78.

Valeant shares closed today at $15.98, climbing $1.01 or 6.75%.