Cantor Fitzergald Reiterates Buy On Valeant Pharmaceuticals Following Examination Of Key AGN Deal Issues

In a report issued today, Cantor Fitzergald analyst Irina Rivkind reiterated a Buy rating on Valeant Pharmaceuticals International (NYSE:VRX) with a $167 price target, following an examination of the key AGN deal issues. 

Koffler notes: “We evaluate the potential AGN deal accretion. We have used consensus estimates for AGN to create a hypothetical, pro-forma model for a combined VRX/AGN entity. We conservatively use lower cost synergies of $2.0B instead of $2.7B guided by Valeant, we add 250M shares to the share count, and we more than double Valeant’s interest expense to $2.0B in 2015. This pro-forma yields a hypothetical VRX 2015 EPS of $12.16 (+34% accretion from our standalone 2015 EPS estimate of $9.05) and a hypothetical VRX price target of $185 (+11%). We currently use a leverage ratio of ~3.3x 2015 EBITDA, which would rise slightly to 3.5x if the Allergan deal transpired.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Irina Rivkind has a total average return of 17.2% and a 61.9% success rate. Rivkind has a -7.0% average return when recommending VRX, and is ranked #175 out of 3263 analysts.

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