Now the stock has been rated as “Buy” from 5 Analysts.
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IBD’S TAKE: Valeant’s stock is now low-rated, but investors who played it right made a lot of money on it in the recent past. The company is also under investigation by several US government agencies.Valeant was previously a stock-market darling as it rapidly acquired other companies and cut research costs.
On a positive note, Valeant’s cash flow from operations improved. Analysts had expected $1.61. Check out IBD’s video CAN SLIM Case Study: Valeant Pharmaceuticals. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.61 per share. The company has a consensus rating of “Hold” and an average target price of C$34.33.
Valeant Pharmaceuticals Intl Inc (TSE:VRX) traded up 2.04% during trading on Monday, reaching $29.52.
About $80 billion of the Canadian drugmaker’s market value has been erased, as has its business model of acquiring drugs and raising their prices. The stock has dropped 91 percent in the last 12 months.
Valeant has previously missed deadlines for filing financial reports due to the sales and earnings restatements, triggering default notices.
The company, whose US shares were up 6.9 percent in premarket trading, said second-quarter revenue fell to $2.42 billion from $2.73 billion a year earlier. Having a look at the historical EPS report, the company attained $10.16 EPS for the previous year. Revenue fell by 11% compared to the year before. Now the stock has been rated as “Buy” from 17 Analysts.
Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s mean EPS estimate was $2.68 for the quarter ended on 9/2015, while it reported EPS of $2.70 on 10/19/2015 BMO, beating the analysts’ consensus estimate by 0.02 with surprise factor of 0.75%.
A September 21 tweet from Democrat Presidential candidate Hillary Clinton that vowed to end specialty pharmaceutical companies’ price gouging. Beta factor of the stock stands at 0.25. State of New Jersey Common Pension Fund D purchased a new position in shares of Valeant Pharmaceuticals International during the fourth quarter worth $2,033,000. He joins Valeant from Citadel Investment Group, where he oversaw equity investments and risk management decisions within the Health Care sector at Surveyor Capital. (NYSE:GPS) is $21.15 while analysts mean recommendation is 3.10. Another potential factor is Joseph Papa’s comment about “a new strategic direction”. The firm’s shares performance for the last one month was 4.42% and 7.76% in the previous week.
Valeant, the acquisitive pharmaceutical company under scrutiny over its accounting practices, has replaced its general counsel and announced the exit of the company’s PR and IR chief.
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Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter products, and medical devices worldwide.
