Valeant Takes Another Blow
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) can’t seem to catch a break. The company dropped another 4.75% today as the embattled pharmaceutical producer was once again downgraded to “Underperform” from “Neutral” by Irina Koffler at Mizuho Securities Co., Ltd., where she believes investors are reaching the end of their tether with VRX stock.
Koffler went on to reduce her target price on Valeant from $25.00 to $11.00. She expects the stock to move lower in the next six months to a year.
“We believe the risk/reward is unfavorable due to growth challenges, 2017 guidance risk, legal overhangs, and weaker asset divestitures,” Koffler told clients. (Source: “Valeant Pharmaceuticals International Inc downgraded again,” Financial Post, November 23, 2016.)
The stock is trading at just about its all-time low, and there hasn’t been much bright news for Valeant since VRX stock had first begun to drop at the beginning of September.
VRX stock is down 84% since the beginning of 2016, in what has essentially been an all-around dismal year for Valeant stock.
Of course, there’s always the chance of a comeback. Nothing is set in stone and the company cannot be written off yet. However, with legal troubles mounting, analysts telling investors to flee the ship, and even more investigations circling in the water, for many it might be time to find less troubled waters to sail in.
Be sure to check back to see just where Valeant Pharmaceuticals Intl Inc and VRX stock is bound to go in the near- and long-term future. It certainly won’t be uninteresting or predictable.
You can see a recap of some of the finer details of the legal troubles faced by Valeant here.