'Boring' Valeant Poised for Q2 Beat

Valeant Pharmaceuticals will report second quarter earnings results next Tuesday, August 8.
By Giovanni Bruno ,

Shares of Valeant Pharmaceuticals (VRX) were falling over 2% on the heels of disappointing second quarter earnings results from rival Teva Pharmaceuticals Industries (TEVA) - Get Report , whose shares are plummeting over 18%.

But RBC Capital analysts Douglas Miehm and Joel Hurren aren't expecting similar fireworks when Valeant reports next week and raised their price target on the pharmaceutical firm.

"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."

The analysts hiked their price target on Valeant's stock to $21 per share, up from $19 per share, but reiterated their "Sector Perform" rating.

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