Valeant Has More Volatility Coming, JPMorgan Says
JPMorgan recently issued a company note on Valeant Pharmaceuticals Intl Inc (NYSE: VRX) after the company postponed their earnings call and withdrew their prior 2016 financial guidance. Currently, analysts at JPMorgan rate Valeant Pharmaceuticals as Overweight, while a price target is unavailable.
Chris Schott and Wendy Lin, analysts at JPMorgan, wrote, "Valeant is postponing tomorrow's earnings call and is withdrawing its prior 2016 financial guidance. While we see these actions as procedural/necessary with Pearson needing to review 4Q results and 2016 guidance upon his return, we acknowledge that the timing of the earnings delay and guidance withdrawal is unfortunate given the ongoing controversies with VRX shares."
CEO's Return Amid Volatility
Analysts at JPMorgan released news that Mike Pearson is returning as Valeant's CEO after the recent volatility in the stock's price and disappointing earnings results. JPMorgan viewed his return as a clear long-term positive, but also noted that his return most likely caused the withdrawal of the company's 2016 financial guidance.
Going forward, analysts see strong fundamentals for Valeant including improving prescription trends and key partnerships with distributors, which have the potential to drive top line growth and profitability.
At the time of this publication, Valeant was trading down 8.23 percent on the day at $74.01.
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Latest Ratings for VRX
|Sep 2016||Deutsche Bank||Initiates Coverage on||Hold|
|Aug 2016||Morgan Stanley||Upgrades||Equal-Weight||Overweight|
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