The pharmaceutical company's price target was lowered due to the firm's projections that Allergan will report a weaker-than-expected 2016 first quarter, Canaccord said.
On Wednesday, Allergan announced that the FTC asked for additional information regarding its merger with Pfizer (PFE). The request was "fully anticipated," the companies said.
There is still a high likelihood that the combination with Pfizer closes, according to Canaccord.
Even without the combination with Pfizer, Allergan still has a robust pipeline and strong balance sheet, TheStreet's Action Alerts PLUS Portfolio Manager Jim Cramer wrote in an article.
"We are not concerned about the merger's antitrust risk; despite the eye-popping size, there is little overlap from a competitive standpoint -- a point that has been repeatedly emphasized by a litany of independent FTC experts," Cramer and Research Director Jack Mohr wrote in the article on Wednesday. "Therefore, we do not view today's announcement as incremental."
Allergan stock is up by 0.68% to $276.62 in pre-market trading on Thursday.
(Allergan is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial.)
Separately, 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.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
You can view the full analysis from the report here: AGN