A look at Allergan
Headquartered in Dublin, Ireland, Allergan (AGN) is one of the leading pharmaceutical companies, dealing with both generic and specialty pharmaceutical products. The US administrative headquarters are in Parsippany, New Jersey. Allergan has segregated its business into three segments: US General Medicine, US Specialized Therapeutics, and the International business.
The above chart shows the comparison of revenues and EPS (earnings per share) over the last eight quarters and estimates for 3Q17.
Allergan stock has fallen ~15.4% in 3Q17. It has fallen 9.8% year-to-date as of October 20, 2017.
Wall Street analysts estimate that the stock has the potential to return ~28.2% over the next 12 months. Their recommendations show a 12-month target price of $242.67 per share compared to the last price of $189.27 per share on October 19, 2017.
There are 21 analysts tracking Allergan stock. Fourteen of them have recommended a “buy” for the stock, while seven have recommended a “hold.” The consensus rating for Allergan is 2.14, which represents a “buy” for long-term growth investors.
Analysts’ revenue estimates
The products that drive the growth of Allergan include medical aesthetics products such as botox, fillers, and Kybella; eye care products including Restasis and Ozurdex; and general medicines including Linzess, Lo Loestrin, Viberzi, and Vraylar.
Wall Street analysts estimate revenues of $4.0 billion in 3Q17, an 11.4% rise compared to 3Q16, and EPS of $3.93.
To divest the company-specific risks, investors can consider ETFs such as the Vanguard Growth ETF (VUG), which holds 0.80% of its total assets in Allergan (AGN). VUG also holds 0.90% in Bristol-Myers Squibb (BMY), 1.0% in Gilead Sciences (GILD), and 1.1% in AbbVie (ABBV).