NEW YORK (TheStreet) -- Shares of Allergan Inc. (AGN) are slightly higher in pre-market trade after the health care company adopted a poison pill defense against the unsolicited $46 billion takeover bid from Valeant Pharmaceuticals (VRX) and activist investor Bill Ackman.
Allergan shares closed up 15.25% to $163.65 yesterday, while Valeant's stock closed up 7.46% to $135.41.
Ackman told CNBC that Allergan's poison pill defense doesn't necessarily make the takeover that he and Valeant are pursuing more difficult.
He said he supports the poison pill as a way for Allergan to figure out its alternatives.
TheStreet Ratings team rates ALLERGAN INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLERGAN INC (AGN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: