UPDATE: Jefferies Reiterates Valeant Pharmaceuticals at Buy Following Cash Tender Offer

Jefferies maintained Valeant Pharmaceuticals VRX with a Buy rating and a $77.00 price target. Jefferies analyst Corey Davis commented, "This morning, VRX announced a ~$360M all-cash tender offer for Obagi Medical Products. It's not a “transformative” deal, but mildly accretive and a solid strategic fit with its new aesthetics franchise which should make it more competitive against a stronger AGN portfolio. We see the valuation as more than reasonable (~2.7x EV/Sales) and believe Obagi shareholders will tender into the deal. VRX remains one of our top 3 picks." Valeant Pharmaceuticals closed at $71.44 on Tuesday.