Valeant Pharmaceuticals 'Still Moving' Despite Lack Of Headlines, Analyst Says

In a report published Monday, Barclays analysts maintained an Overweight rating on

, while raising the price target from $220 to $230. The analysts expect the company to "experience multiple expansion" as it generates faster as well as more sustainable organic growth than what investors are currently anticipating. "In particular, we believe VRX will enjoy the benefits from pipeline assets acquired from Bausch & Lomb in 2013. Also, we continue to see plentiful opportunities for M&A, another contributor to growth," the analysts wrote. Valeant Pharmaceuticals has also recently closed the SLXP acquisition which provides the former entry into the GI market, one of the most favorable specialty markets. "Xifaxan should serve as a cornerstone to that franchise, much in the way that Linzess has for ACT (previously FRX). We also believe Apriso is attractively positioned and could benefit from expected potential LOE for Lialda and Asacol HD (expected in 2016)," the report said. Corrective measures to rectify the mismanagement of wholesaler inventory levels are, however, expected to restrict Valeant Pharmaceuticals' revenue growth in 2015. "This artificially suppresses revenues by ~$500M in 2015, although with the expected approval of Xifaxan in IBS-D this year, VRX should see a jump in revenue in '16," the analysts added.