Goldman Raises Earnings Estimates And Price Target On Allergan (AGN)

Goldman Sachs is raising its earnings outlook and price target on Allergan, Inc.

, after the company received approval for Botox to treat migraine headaches. It moved the price target up to $84, and still has shares on America's Buy List. In a note to clients, Goldman writes, "The approval comes ahead of the expected late October FDA action date and November 1st 3Q results. Bottom line, while we had anticipated a positive result, Friday's approval is a clear positive and does three things: (1) will drive Street EPS higher as forecasts become un-risk adjusted (our 3-year CAGR moves to 19% from 17%); (2) make AGN more attractive as a potential take-out candidate (consistent with M&A potential built into our price target) given what we believe will be an attractive high barrier, high growth product opportunity; (3) shift focus to Botox for use in over-active bladder (OAB) which is set to be the next big opportunity in 2011 and beyond." Shares of AGN are up $2.88 in early Monday trading to $71.74.