Valeant (VRX) Stock Gains Amid Baush + Lomb Optimism

Valeant (VRX) stock is higher this afternoon after Stifel reiterated a 'buy' rating given strength within the company's Bausch + Lomb business.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Valeant Pharmaceuticals (VRX)  are advancing 3.43% to $20.80 in early-afternoon trading on Friday after Stifel reiterated a "buy" rating and $55 price target on the stock given enthusiasm for products within the company's Bausch + Lomb business.

The firm recently surveyed optometrists and found that those polled were excited about Bausch + Lomb's new toric and multifocal products, Barron's reports. 

Bausch + Lomb has "only just begun" to launch its newer lines of BioTrue and Ultra, and could achieve larger market share in the near- to medium-term, Stifel said. 

Additionally, AstraZeneca (AZN) has ended its European licensing agreement for skin medicine brodalumab with Valeant, though Valeant will continue to lead the development and commercialization of the drug in the U.S. and some other markets.

Valeant claims that the termination will help it focus on the U.S. market. AstraZeneca will pay an undisclosed upfront payment and other sales-based milestone payments, Valeant noted in a statement.

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

Valeant's weaknesses include its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: VRX

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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