Several analysts have recently weighed in on Allergan, Inc. (NYSE:AGN), issuing notes to investors. Marc Goodman of UBS downgraded their Hold rating on the stock 4 weeks ago with a $219.00 price target, or 0.02% downside to the last closing price. According to Tip Ranks, Goodman is ranked 240 out of 3441 analysts. The stocks he covers yield an average of 18.6% growth in the one year following his recommendations.
Larry Biegelsen of Wells Fargoalso released a note to investors two months ago downgrading the firms Hold stance on Allergan, Inc. (NYSE:AGN).
“Allergan, Inc. (AGN)announced a definitive agreement to be acquired by ACT in a $66B+ stock and cash transaction. The news did not come as a surprise following recent media reports of talks between the companies. Based on recent comments by AGN management, we had expected some strategic announcement from AGN by early Dec, ahead of the Dec 18 special shareholder meeting related to the previous hostile bid from VRX/Pershing Square. With VRX having already announced in a PR that it cannot justify matching or exceeding this offer, a superior bid is unlikely in our view.”
Larry also added, “As such, while our view on the strong fundamentals of an above-average growth outlook for AGN remains unchanged, we are downgrading shares of AGN to Market Perform from Outperform based on valuation. Post the deal announcement, AGN shares are now trading within 10% of our valuation range and ACT’s offer price. Closing of the deal is expected in Q2 2015 and is subject to shareholder approval of both companies and antitrust clearance.”
According to TipRanks.com Larry Biegelsen 251 out of 3441 analysts and has an average one year return of 23.8% on the stocks he covers with a 83% success rate.
Another analyst at Barclays has a Neutral stance on the stock. Douglas Tsao issued a note 2 month ago with a Hold rating on the stock and $208.00 price target or 5.01% downside to the last closing price. According to Tip Ranks, Douglas is ranked 96 out of 3441 analysts. The stocks he covers yield an average return of 33.3% in the year following his recommendations.
“Our $208 price target for Allergan, Inc. (NYSE:AGN) is based on a blended valuation for AGN on a standalone basis ($180/share based on 20x our standalone FY16 EPS estimate of $9.04) as well as ACT’s current $219/share bid for the company. We apply 70% weight to the ACT’s $219 bid and 30% weight to our standalone valuation, noting we are conservative in our estimate of the probability of the deal closing as we think the chances of the deal closing are actually higher.”