Valeant's Up 12% Today; Rodman & Renshaw Sees Shares Getting To $90

It’s not often that a Wall Street analyst will set a price target for a big-name stock that represents nearly 300 percent upside. But in a new research note, Rodman & Renshaw’s Raghuram Selvaraju did just that when he set a $90 price target for Valeant Pharmaceuticals Intl Inc VRX.

The aggressive Selvaraju price target may be the driving force behind Valeant’s 12.5 percent surge in Wednesday’s session. The target may have also spooked Valeant shorts and triggered a squeeze.

The move also may have been feuled by technical buying at the $20 level.

“In our view, July is shaping up to be a busy month for Valeant, given the potential for three regulatory decisions in the coming weeks,” Selvaraju explains.

Related Link: 5 Stocks Cut In Half In 2016

First, the FDA advisory committee s set to review Valeant’s BLA for brodalumab on July 19.

Valeant is also expecting an FDA ruling on oral Relistor for opioid-induced constipation on July 19.

Finally, Valeant is expecting an approval decision on Vesneo for treatment of glaucoma on July 21.

“In our view, [Vesneo] is the highest likelihood approval event for Valeant, and we consider Vesneo to have >$500M peak sales potential in the U.S. alone,” Selvaraju notes.

Despite the 12 percent Wednesday surge, Valeant remains down 78.1 percent in 2016.

Disclosure: the author holds no position in the stocks mentioned.