VRX: Highly Bullish Stock (Analysis)
90% of major trading institutions have "BUY" on the stock, 10% "Hold" and 0 "Sell." Recent 20 price targets for VRX range between 33% and 128% from today's closing. This stock is set to explode up, up, up!
VRX (NYSE) POISED FOR A HUGE UPSIDE
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Looking on a daily chart, VRX (Valeant Pharmaceuticals) is hugely bullish and is staging a full comeback. No wonder major institutional firms, banks and analysts have recently given “BUY” rating on the VRX stock.
Here are BULLISH signs generated after the closing price on Nov 22, 2015 for VRX (NYSE):
1. Parabolic SAR (Parabolic Stop and Reverse) has generated a BUY signal;
2. MACD cross-over is pointing up and indicating that bearish sentiment is nearing it’s end;
3. The price broke 20-day Simple Moving Average indicating that bulls are taking over;
4. ADX Line is trending with DMI+ and DMI- contracting, indicating that bears (sellers) are losing ground and bulls (buyers) are taking over; we expect DMI+ and DMI- crossover any day.
Major institutional trading firms, banks and analysts expect VRX share price to soar between 33% and 128% from today’s closing prices:
11/24/2015 -- Valeant Pharmaceuticals Intl (NYSE:VRX) had its price objective set by Guggenheim to $195.00, which represents 128% increase from today’s closing price of $87.41. The brokerage currently has a buy rating on the specialty pharmaceutical company’s stock.
11/20/2015 – Valeant Pharmaceuticals Intl (VRX) had its price target set at$111 by analysts at Mizuho. They now have a “BUY” rating on the stock.
11/19/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Canaccord Genuity. They now have a $170.00 price target on the stock.
11/19/2015 – Valeant Pharmaceuticals Intl is now covered by analysts atCitigroup Inc. They set an “overweight” rating on the stock with a “BUY”recomendation.
11/17/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts at Morgan Stanley to $98.00. They now have an “equal weight” rating on the stock and recommend a “BUY.”
11/12/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Bank of America.
11/12/2015 – Valeant Pharmaceuticals Intl had its “HOLD” rating reaffirmed by analysts at Deutsche Bank.
11/11/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atTD Securities to $160.00. They now have a “BUY” rating on the stock.
11/11/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atRBC Capital to $206.00. They now have an “OUTPERFORM” rating on the stock.
11/11/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atStifel Nicolaus to $200.00. They now have a “BUY” rating on the stock.
11/11/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atJPMorgan Chase & Co. to $225.00. They now have an “OVERWEIGHT”rating on the stock.
11/11/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atNomura to $175.00. They now have a “BUY” rating on the stock.
11/6/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atGuggenheim to $195.00. They now have a “buy” rating on the stock.
11/5/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Mizuho.
11/3/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atDeutsche Bank to $136.00. They now have a “HOLD” rating on the stock.
11/3/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atRBC Capital to $213.00. They now have an “outperform” rating on the stock.
11/3/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atBMO Capital Markets to $133.00. They now have a “MARKET PERFORM” rating on the stock.
11/2/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atScotiabank to US$170.00.
11/2/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atJefferies Group to US$172.00. They now have a “BUY” rating on the stock.
11/2/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Canaccord Genuity. They now have a $170.00 price target on the stock.
11/2/2015 – Valeant Pharmaceuticals Intl was target price was set by analysts atGoldman Sachs to $122.00 price target on the stock.
11/1/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Bank of America. They now have a US$173.00 price target on the stock.
11/1/2015 – Valeant Pharmaceuticals Intl had its “EQUAL WEIGHT” rating reaffirmed by analysts at Morgan Stanley.
11/1/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Stifel Nicolaus. They now have a $285.00 price target on the stock.
BILL ACKMAN'S VALEANT PHARMACEUTICALS CONTRARIAN APPROACH TO PAY OFF
Bill Ackman will eventually prove everyone wrong with his Valeant Pharmaceuticals (VRX) bet.
Ackman joins notable contrarians, like Warren Buffet, Michael Lee-Chin, Jim Rogers, Marc Faber, David Dreman, John Neff, Mark Riple and Paul Tudor Jones.
Recently, Ackman raised his stake in VRX from 5.7% to 9.9%. Out of 20 analysts covering Valeant Pharmaceuticals Intl (NYSE:VRX), 15 rate it “Buy”, 5 “Hold.” This means 75% are positive.
Contrarian Investing is an investment strategy that is characterized by purchasing and selling in contrast to the prevailing sentiment of the time.
A contrarian believes that certain crowd behavior among investors can lead to exploitable mispricings in securities markets. For example, widespread pessimism about a stock can drive a price so low that it overstates the company’s risks, and understates its prospects for returning to profitability.
Identifying and purchasing such distressed stocks, and selling them after the company recovers, can lead to above-average gains. Conversely, widespread optimism can result in unjustifiably high valuations that will eventually lead to drops, when those high expectations don’t pan out. Avoiding (or short-selling) investments in over-hyped investments reduces the risk of such drops. These general principles can apply whether the investment in question is an individual stock, an industry sector, or an entire market or any other asset class.
A contrarian seeks opportunities to buy or sell specific investments when the majority of investors appear to be doing the opposite, to the point where that investment has become mispriced. While more “buy” candidates are likely to be identified during market declines (and vice versa), these opportunities can occur during periods when the overall market is generally rising or falling.
Valeant Pharmaceuticals International (VRX) will host an investor day on December 16 when it will provide updated financial guidance, discussing certain business operations and highlighting certain R&D programs.
GUGGENHEIM: BUY VALEANT PHARMACEUTICALS (VRX) BEFORE DEC. 16 2015
Guggenheim analyst Louise Chen reiterated a Buy rating and $195 on Valeant Pharmaceuticals (NYSE: VRX) saying the stock has bottomed and multiple expansion will drive shares higher. Chen recommends buying ahead of the December 16, 2015 investor day catalyst.
“Concerns regarding high-priced drugs and specialty pharmacies have weighed on VRX shares since mid-September, but we believe the sell-off is now overdone (VRX down 62.4% since 9/18 vs. S&P 500 up 6.7%),” Chen commented.
“Therefore, we recommend buying VRX shares ahead of the company’s Analyst Day, on 12/16/15, and ~5 new drug launches, with blockbuster potential, in ’16. Although VRX may lower its ’16 EBITDA guidance of ~$7.5B, we think this is already expected, and multiple expansion could drive VRX shares higher in ’15+. Multiple expansion could come from brand pipeline advancements, execution of stated business objectives, and capital allocation. Finally, VRX is inexpensive. The stock trades at 6.3x ’16E consensus EPS, while its peers trade at, on average, 14.6x. VRX has a 15%-20% 3-year EPS CAGR while its peers have, on average, an 8% 3-year EPS CAGR. Even if one believes the allegations of fraud for VRX’s legacy business, we believe the company’s $30B market cap is justified by B&L and Salix (VRX bought B&L and Salix for $8.7B and $15.8B, respectively).”
90% of major trading institutions have "BUY" on the stock, 10% "Hold" and 0 "Sell." Recent 20 price targets for VRX range between 33% and 128% from today's closing. This stock is set to explode up, up, up!
VRX (NYSE) POISED FOR A HUGE UPSIDE
[
Looking on a daily chart, VRX (Valeant Pharmaceuticals) is hugely bullish and is staging a full comeback. No wonder major institutional firms, banks and analysts have recently given “BUY” rating on the VRX stock.
Here are BULLISH signs generated after the closing price on Nov 22, 2015 for VRX (NYSE):
1. Parabolic SAR (Parabolic Stop and Reverse) has generated a BUY signal;
2. MACD cross-over is pointing up and indicating that bearish sentiment is nearing it’s end;
3. The price broke 20-day Simple Moving Average indicating that bulls are taking over;
4. ADX Line is trending with DMI+ and DMI- contracting, indicating that bears (sellers) are losing ground and bulls (buyers) are taking over; we expect DMI+ and DMI- crossover any day.
Major institutional trading firms, banks and analysts expect VRX share price to soar between 33% and 128% from today’s closing prices:
11/24/2015 -- Valeant Pharmaceuticals Intl (NYSE:VRX) had its price objective set by Guggenheim to $195.00, which represents 128% increase from today’s closing price of $87.41. The brokerage currently has a buy rating on the specialty pharmaceutical company’s stock.
11/20/2015 – Valeant Pharmaceuticals Intl (VRX) had its price target set at$111 by analysts at Mizuho. They now have a “BUY” rating on the stock.
11/19/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Canaccord Genuity. They now have a $170.00 price target on the stock.
11/19/2015 – Valeant Pharmaceuticals Intl is now covered by analysts atCitigroup Inc. They set an “overweight” rating on the stock with a “BUY”recomendation.
11/17/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts at Morgan Stanley to $98.00. They now have an “equal weight” rating on the stock and recommend a “BUY.”
11/12/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Bank of America.
11/12/2015 – Valeant Pharmaceuticals Intl had its “HOLD” rating reaffirmed by analysts at Deutsche Bank.
11/11/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atTD Securities to $160.00. They now have a “BUY” rating on the stock.
11/11/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atRBC Capital to $206.00. They now have an “OUTPERFORM” rating on the stock.
11/11/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atStifel Nicolaus to $200.00. They now have a “BUY” rating on the stock.
11/11/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atJPMorgan Chase & Co. to $225.00. They now have an “OVERWEIGHT”rating on the stock.
11/11/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atNomura to $175.00. They now have a “BUY” rating on the stock.
11/6/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atGuggenheim to $195.00. They now have a “buy” rating on the stock.
11/5/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Mizuho.
11/3/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atDeutsche Bank to $136.00. They now have a “HOLD” rating on the stock.
11/3/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atRBC Capital to $213.00. They now have an “outperform” rating on the stock.
11/3/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atBMO Capital Markets to $133.00. They now have a “MARKET PERFORM” rating on the stock.
11/2/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atScotiabank to US$170.00.
11/2/2015 – Valeant Pharmaceuticals Intl had its price target set by analysts atJefferies Group to US$172.00. They now have a “BUY” rating on the stock.
11/2/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Canaccord Genuity. They now have a $170.00 price target on the stock.
11/2/2015 – Valeant Pharmaceuticals Intl was target price was set by analysts atGoldman Sachs to $122.00 price target on the stock.
11/1/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Bank of America. They now have a US$173.00 price target on the stock.
11/1/2015 – Valeant Pharmaceuticals Intl had its “EQUAL WEIGHT” rating reaffirmed by analysts at Morgan Stanley.
11/1/2015 – Valeant Pharmaceuticals Intl had its “BUY” rating reaffirmed by analysts at Stifel Nicolaus. They now have a $285.00 price target on the stock.
BILL ACKMAN'S VALEANT PHARMACEUTICALS CONTRARIAN APPROACH TO PAY OFF
Bill Ackman will eventually prove everyone wrong with his Valeant Pharmaceuticals (VRX) bet.
Ackman joins notable contrarians, like Warren Buffet, Michael Lee-Chin, Jim Rogers, Marc Faber, David Dreman, John Neff, Mark Riple and Paul Tudor Jones.
Recently, Ackman raised his stake in VRX from 5.7% to 9.9%. Out of 20 analysts covering Valeant Pharmaceuticals Intl (NYSE:VRX), 15 rate it “Buy”, 5 “Hold.” This means 75% are positive.
Contrarian Investing is an investment strategy that is characterized by purchasing and selling in contrast to the prevailing sentiment of the time.
A contrarian believes that certain crowd behavior among investors can lead to exploitable mispricings in securities markets. For example, widespread pessimism about a stock can drive a price so low that it overstates the company’s risks, and understates its prospects for returning to profitability.
Identifying and purchasing such distressed stocks, and selling them after the company recovers, can lead to above-average gains. Conversely, widespread optimism can result in unjustifiably high valuations that will eventually lead to drops, when those high expectations don’t pan out. Avoiding (or short-selling) investments in over-hyped investments reduces the risk of such drops. These general principles can apply whether the investment in question is an individual stock, an industry sector, or an entire market or any other asset class.
A contrarian seeks opportunities to buy or sell specific investments when the majority of investors appear to be doing the opposite, to the point where that investment has become mispriced. While more “buy” candidates are likely to be identified during market declines (and vice versa), these opportunities can occur during periods when the overall market is generally rising or falling.
Valeant Pharmaceuticals International (VRX) will host an investor day on December 16 when it will provide updated financial guidance, discussing certain business operations and highlighting certain R&D programs.
GUGGENHEIM: BUY VALEANT PHARMACEUTICALS (VRX) BEFORE DEC. 16 2015
Guggenheim analyst Louise Chen reiterated a Buy rating and $195 on Valeant Pharmaceuticals (NYSE: VRX) saying the stock has bottomed and multiple expansion will drive shares higher. Chen recommends buying ahead of the December 16, 2015 investor day catalyst.
“Concerns regarding high-priced drugs and specialty pharmacies have weighed on VRX shares since mid-September, but we believe the sell-off is now overdone (VRX down 62.4% since 9/18 vs. S&P 500 up 6.7%),” Chen commented.
“Therefore, we recommend buying VRX shares ahead of the company’s Analyst Day, on 12/16/15, and ~5 new drug launches, with blockbuster potential, in ’16. Although VRX may lower its ’16 EBITDA guidance of ~$7.5B, we think this is already expected, and multiple expansion could drive VRX shares higher in ’15+. Multiple expansion could come from brand pipeline advancements, execution of stated business objectives, and capital allocation. Finally, VRX is inexpensive. The stock trades at 6.3x ’16E consensus EPS, while its peers trade at, on average, 14.6x. VRX has a 15%-20% 3-year EPS CAGR while its peers have, on average, an 8% 3-year EPS CAGR. Even if one believes the allegations of fraud for VRX’s legacy business, we believe the company’s $30B market cap is justified by B&L and Salix (VRX bought B&L and Salix for $8.7B and $15.8B, respectively).”
