Canaccord Genuity is Confident Valeant Pharmaceuticals Intl Inc Will Buy Salix, Maintains Buy Rating
In a research report issued on March 16, Canaccord Genuity analyst Neil Maruoka maintained a Buy rating on Valeant Pharmaceuticals Intl Inc (NYSE:VRX) with a price target of $230, after the pharmaceutical company increased its bid on Salix Pharmaceuticals, Ltd.
Maruoka explained that Valeant raised its all-cash offer for Salix by 9.5%, increasing its bid from $158 per share to $173 per share. The boards of both companies have agreed on these terms as long as the deal is satisfied by April 8. Valeant increased its offer for Salix after Endo made a competing offer. However, Maruoka believes that “Valeant’s all-cash offer provides more certainty for Salix shareholders and a faster close, as it is not dependent on additional due diligence.” He does not think Endo will raise its bid because of the high termination fee for Valeant’s deal.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Neil Maruoka has a total average return of 15.8% and a 81.3% success rate. Maruoka has a 31.5% average return when recommending VRX, and is ranked #843 out of 3516 analysts.