Valeant Analysts Turn On Company, Price Nears Left's $50 Target
Valeant Pharmaceuticals Intl Inc (NYSE: VRX) shares are trading lower in Tuesday's session, hitting a low under $62 per share -- over a 6 percent decline. Shares are now trading at levels not seen since July 2013, when they bottomed at $59.34.
The stock was trading higher in pre-market trading but sold off after Benzinga's Premarket Prep discussed the company's undisclosed SEC investigation with Probes Reporter's John Gavin. Gavin reported earlier in the week that new data shows Valeant was facing ongoing SEC enforcement proceedings.
Valeant later confirmed the report to Bloomberg.
Valeant traded above $240 per share in mid-September 2015 before a pronounced selloff. Shares continue to move closer to the $50 price target Citron's Andrew Left placed on Valeant near that time; Left's short thesis said Valeant used specialty pharmacy segment Philidor RX to create "phantom" sales.
Last month, Wells Fargo's David Maris said Valeant had a greater-than-50 percent chance of bankruptcy.
Other analysts are following suit on Valeant on Tuesday. Deutsche Bank supended its rating on the company, adding it has been "long skeptical" of its business model. RBC downgraded its rating, while Jefferies cut its price target by 40 percent.
Valeant shares are still $12 off of Left's price target, resting in the $62 range.
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