Shares of Valeant Pharmaceuticals International (VRX) are falling today--likely because Teva Pharmaceutical Industries (TEVA) is tanking after releasing its earnings--but one team of analysts expects no fireworks from Valeant when it reports next week, and even raised its price target.
That would be RBC's Douglas Miehm and Joel Hurren, who write that "this could be the first 'boring' quarter in a while" for Valeant. They explain why:
Valeant reports Q2/17 results the morning of August 8th. We anticipate $2.25B in revenues, $911MM in Adj. EBITDA, and $0.98 in Adj. EPS. We believe this could be the first 'boring' quarter in a while for VRX and anticipate even a slight beat vs. consensus would lead to a positive reaction in the shares. We expect guidance to be updated to reflect closing of the Dendreon sale.
Miehm and Hurren raised Valeant's price target to $21 from $19, but maintained their Sector Perform rating.
Shares of Valeant Pharmaceuticals International have dropped 3.7% to $15.80 at 10:06 a.m. today, while Teva Pharmaceutical Industries has plunged 19% to $25.33.