Cantor Fitzgerald Believes Valeant Pharma (VRX) Still Has Room to Grow


Cantor Fitzgerald analyst Louise Chen maintained a Buy rating on Valeant Pharma (NYSE: VRX) today and set a price target of $32. The company’s shares closed on Friday at $26.86, close to its 52-week high of $27.79.

Chen observed:

“. We are increasing our 12-month PT for VRX shares from $25 to $32. The increase in our PT is driven by multiple expansion because earnings visibility in 2018+ is improving, in our view. We use a blend of EV/EBITDA and DCF analysis to arrive at our new PT. Beginning in mid-July of this year, VRX will be known as and trade under the BHC ticker. Starting in 2Q18, VRX will report and operate in four reporting segments: Diversified Products.”

According to TipRanks.com, Chen has 0 stars on 0-5 star ranking scale with an average return of -4.0% and a 42.0% success rate. Chen covers the Healthcare sector, focusing on stocks such as Aclaris Therapeutics Inc, Paratek Pharmaceuticals, and Spero Therapeutics Inc.

Currently, the analyst consensus on Valeant Pharma is Hold and the average price target is $21.55, representing a -19.8% downside.

In a report issued on June 6, Barclays also upgraded the stock to Buy with a $29 price target.

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Based on Valeant Pharma’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $2.69 billion. In comparison, last year the company earned revenue of $2.11 billion and had a net profit of $628 million.

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Valeant Pharmaceuticals International, Inc. engages in the development, manufacture, and market of a range of branded, generic and branded generic pharmaceuticals, medical devices and over-the-counter products. It operates through the following segments: The Bausch + Lomb/International, Branded Rx, and U.S. Diversified Products.

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