Market Overview

BTIG: Valeant Must Sweeten Allergan Bid To More Than $200/Share

Share:
Related AGN
Allergan Continues Educational Strategy Amid FDA's Report Linking Breast Implants To Rare Cancer
FDA Links Breast Implants To A Rare Form Of Cancer
Corporate Share Repurchases Decline for —nd Year in a Row (GuruFocus)

Allergan's (NYSE: AGN) strong showing in its recent second quarter suggests an acquirer may need to offer "north of $200 a share," one analyst said Tuesday.

Valeant Pharmaceuticals' (NYSE: VRX) $53 billion unsolicited bid for Allergan was rejected last month. The bid equaled $72 in cash and 0.83 per share of Valeant stock for each Allergan share.

Valeant on Monday complained to regulators in the U.S. and Canada, claiming that Allergan had made false statements about sales of some Valeant products in an increasingly bitter takeover battle.

In addition to strong results, Allergan unveiled a $475 million restructuring plan that will cut 1,500 employees and 250 vacant positions.

BTIG's Sean Lavin said resulting savings and an improved outlook should boost Allergan's 2015 earnings to $8.30 per share and 2016 earnings to $10 per share.

"Valeant probably needs to raise it's bid in our opinion," Lavin said in a research note, in which he suggested a price of greater than $200 per share.

Lavin raised his target from $180 to $200 and maintained a Buy rating.

Allergan opened higher Tuesday, but closed down 0.41 percent at $170.43.

Latest Ratings for AGN

DateFirmActionFromTo
Nov 2016Morgan StanleyMaintainsOverweight
Oct 2016BarclaysAssumesEqual-Weight
Aug 2016MizuhoUpgradesNeutralBuy

View More Analyst Ratings for AGN
View the Latest Analyst Ratings

Posted-In: btig Sean LavinAnalyst Color Earnings News Guidance M&A Analyst Ratings

 

Related Articles (AGN + VRX)

View Comments and Join the Discussion!