The reduced price target comes after the Ireland-based pharmaceutical company posted better-than-expected 2015 fourth quarter results yesterday.
The lower price target reflects adjustments in the company's guidance.
For the full year, Allergan expects revenue of about $17 billion, which is about $700 million below what Wall Street projected, the firm noted.
This is primarily due to an expected $500 million year-over-year decline in its generic distribution business revenue as a result of the merger between Target Corp. (TGT) and CVS Health Corp. (CVS), Canaccord Genuity added.
"Despite the light topline guidance, it matters little since margins will stay the same because the previous deal Target carried very little profit," the firm said in an analyst note.
Shares of Allergan are decreasing 0.12% to $286.47 in after-hours trading on Tuesday.
(Allergan is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with afree trial.)
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations.
As a counter to these strengths, the team finds that the stock has had a decline in price during the past year.
Recently, 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 articles's author.
You can view the full analysis from the report here: AGN