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Allergan’s Stock Performance and Estimates for Q3 2018

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A look at Allergan

Allergan’s (AGN) product portfolio includes generic pharmaceutical products and specialty pharmaceutical products. The company’s business comprises three segments—US General Medicines, US Specialized Therapeutics, and International. The chart below compares Allergan’s revenues and EPS since the first quarter of 2017, as well as its estimates for the third quarter.

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Stock performance and recommendations

Allergan’s (AGN) stock price increased ~15.4% in the third quarter. Its stock price rose 18.5% year-to-date on October 2.

Wall Street analysts expect Allergan stock to return ~9.2% over the next 12 months. Analysts’ recommendations show a 12-month target price of $211.58 per share compared to its October 1 price of $192.33 per share.

Twenty-three analysts currently track Allergan stock. Four analysts recommend a “strong buy,” 12 analysts recommend a “buy,” and seven analysts recommend a “hold.” Allergan’s consensus rating stands at 2.13, which represents a “buy” for long-term growth investors.

Analysts’ revenue estimates

The products that drive Allergan’s growth include its medical aesthetics products Botox and Kybella. Its eye care products include Restasis and Ozurdex. Its general medicines include Linzess, Lo Loestrin, Viberzi, and Vraylar.

Wall Street analysts expect Allergan to report EPS of $3.98 on revenues of $3.8 billion in the third quarter. This represents a 5.3% decline in revenues, compared to its third-quarter revenues of $4.0 billion in the third quarter of 2017.

The VanEck Vectors Biotech ETF (BBH) holds 4.9% of its total investments in Allergan (AGN), 5.0% in Celgene (CELG), 5.0% in Biogen (BIIB), and 7.0% in Gilead Sciences (GILD).

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