Share price estimates for Valeant
As per the company news release, Valeant Pharmaceuticals (VRX) will report earnings for 3Q16 on November 8, 2016. According to a Bloomberg consensus of 23 brokerage firms from November 3, 2016, 30.4% rated Valeant a “buy,” and 52.2% of firms rated it as a “hold.” 17.4% of brokerage firms issued a “sell” rating on the stock.
The table above shows 19 brokerage firms and their estimated target price for Valeant Pharmaceuticals. The consensus 12-month target price for Valeant Pharmaceuticals is $36, which translates to a ~77.3% return potential compared to Valeant’s closing price of $20.3 on November 2, 2016. Recently, the company made headlines due to its plans to sell core assets to pay down debt. For details on its possible Salix sale, please refer to Valeant to Sell Salix Business to Takeda.
In the next article, we’ll discuss multiple reasons why Valeant is currently in the news.
What analysts are recommending for Valeant’s peers
According to a Bloomberg survey of 17 analysts on November 3, 2016, 88.2% of analysts issued a “buy” rating for Mallinckrodt (MNK), while 11.8% rated the stock a “hold.” With a consensus price of $92.93, Mallinckrodt presents an opportunity to earn 63.4% over a one-year period on the closing price of $56.87 on November 2.
According to the ratings of 24 analysts in a Bloomberg consensus dated November 3, 2016, 50% believe Endo International (ENDP) is a “buy,” whereas 50% suggested a “hold.” Endo’s consensus price of $25.89, presents upward potential of 46.4% over a 12-month period over its closing price of $17.68 on November 2. A Bloomberg consensus of 20 analysts on November 3, 2016, indicated that 30% issued a “buy” rating for Perrigo (PRGO), and 60% recommended a “hold.” About 10% of the analysts suggested a “sell.” Perrigo presents an opportunity to earn 17.0% given a consensus target price of $98.31 over the closing price of $84.06 on November 2.
To get exposure to highly risky Valeant but at the same time to reduce direct risk associated with it, you can invest in ETFs such as the Pharmaceutical ETF (PPH). PPH has 2.7% of its total holdings in Valeant.