Cantor Maintains Buy On Valeant Following 3Q14 Results; Raises PT $182


In a research report issued Tuesday, Cantor analyst Irina Rivkind maintained a Buy rating on Valeant Pharmaceuticals (NYSE:VRX) and raised his price target to $182 (from $167).

Rivkind commented: “3Q:14 EPS beat and 2014-2015 guidance raised: Valeant reported revenues of $2.06B (+33% Y/Y) and adjusted non-GAAP EPS of $2.11 in 3Q:14 vs. FactSet consensus of $2.06B and $1.99, respectively. Management raised 2014 revenue and cash EPS guidance from $8.0-8.3B and $7.90-8.10, to $8.1-8.3B and $8.22-8.32, respectively. Management also raised its 2015 outlook to $9.1B (assuming 10%+ organic growth) and $10.00 cash EPS (assuming no acquisitions) from $8.9B and $9.40 previously. Additionally, the company reduced its debt to $15.5B which bring its overall leverage ratio to approximately 4x adjusted EBITDA. Given its double-digit organic growth, de-levering, low op-ex, and consistent execution, the stock is considerably undervalued (<13x 2015 P/E), in our view. So much so, that Valeant’s CEO indicated that buybacks could be warranted.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Irina Rivkind Koffler has a total average return of 13.4% and a 56.9% success rate. Rivkind Koffler has a 0.2% average return when recommending VRX, and is ranked #179 out of 3337 analysts.

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