Valeant Pharmaceuticals Is Kicking Butt, Says Canaccord Genuity

In a report published Monday, Canaccord Genuity analyst Neil Maruoka commented that Valeant Pharmaceuticals Intl Inc VRX is "firing on all cylinders."

Valeant On Fire

Maruoka noted the company's strong fourth-quarter report that showed a "robust" base business with an "impressive" 16 percent organic revenue growth. The analyst added that Jublia was a "standout" with $54 million in sales and should easily surpass a $300 million run rate by year-end.

Other Appealing Assets

Maruoka also added that he has "long been fans" of Salix Pharmaceuticals, Ltd.'s SLXP assets and based on Valeant's due diligence, Xifaxan has a very high likelihood for FDA approval in May.

The analyst projected that Xifaxan will be an incremental $1 billion opportunity which will help contribute to a "very sustainable" longer term earnings per share growth in the double digits.

Related Link: 4 Pictures Every Valeant Salix Investor Should See

Looking Ahead

Following the fourth-quarter results and acquisition, the analyst increased his 2016 earnings per share estimates to $15.28 from $12.60, while increasing his discounted cash flow-derived price target (and maintaining a Buy rating) to $230 from a previous $183.