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Stifel Raises Valeant PT As Co. Continues To Execute Global Expansion Strategy


Stifel on Thursday issued a company report on Valeant Pharmaceuticals Intl Inc. (NYSE: VRX) after the company reported revenues of $2.19 billion and cash EPS of $2.36. Stifel rates Valeant Pharmaceuticals as a Buy and raised its price target from $230 to $250.

Analyst Annabel Samimy wrote, "Revenues were driven by Developed Markets (double-digit growth in Dermatology/B+L/Neuro/Dental), offset by negative growth in ROW. Also despite $140 million revenue ($0.12 EPS) FX impact, Emerging Markets continued to see double-digit growth in certain regions on a same-store basis, overshadowing pockets of turmoil. Importantly, raised 2015 guidance points to revenues of $10.4-10.6 billion and Cash EPS to $10.90-11.20 (from $10.10-10.40) and stood firm in its 2016 guidance of EBITDA of $7.5 billion and 20 percent accretion from Salix Pharmaceuticals. VRX continues to successfully execute on its global expansion strategy, and with the recent acquisition of SLXP, we largely expect VRX share to trade rapidly into its combined value."

Based on its latest earnings report, Stifel believes that Valeant Pharmaceuticals can maintain double-digit organic growth in its core businesses. Furthermore, the company appears to be in a great position to overcome the inevitable fluctuations in Emerging Markets. Stifel expects an 80 percent gross margin in Valeant's core businesses, stemming from recent product launches and increasing prices of medications.

The firm sees Valeant as a major growth player in the pharmaceutical industry.

Shares of Valeant Pharmaceuticals last traded at $214.23.19, up 4.2 percent.

Latest Ratings for VRX

Jun 2018DowngradesBuyHold
Jun 2018UpgradesEqual-WeightOverweight
May 2018UpgradesNeutralBuy

View More Analyst Ratings for VRX
View the Latest Analyst Ratings

Posted-In: Annabel Samimy StifelAnalyst Color Price Target Analyst Ratings


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