Allergan's Pipeline Is 'Underappreciated'
Allergan plc (NYSE: AGN) has a “broad and underappreciated” pipeline, which should boost the company’s already robust base business, Credit Suisse’s Vamil Divan said in a report. He initiated coverage of the company with an Outperform rating and a price target of $327.
Analyst Vamil Divan mentioned the investment positives as:
- Open science model for building a broad pipeline, which is not being given enough credit by investors.
- A solid and growing base business.
- Compelling valuation with highly attractive risk/reward at current levels. The valuation could close the gap with major pharmas over time, given Allergan’s evolving business model, Divan commented.
- A best-in-class management team, with a track record of success and delivering shareholder value.
The analyst enumerated the catalysts as:
- The imminent close of sale of the generics business to Teva Pharmaceutical Industries Ltd (NYSE: TEVA).
- The announcement of 2Q16 earnings, scheduled for August 8.
- Multiple incremental data points from the pipeline, “including Phase 3 data for MIM-D3 (dry eye), Phase 2 data for Linzess colonic release and Phase 2 data for relamorelin (diabetic gastroparesis),” Divan noted.
“Interest in the stock should improve over next 12 months with increased focus on underappreciated pipeline and base business strength,” the analyst wrote.
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Latest Ratings for AGN
|Nov 2016||Morgan Stanley||Maintains||Overweight|
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