Why Jim Cramer Might Buy Allergan (AGN) Stock, But Not Valeant (VRX)

NEW YORK (TheStreet) -- TheStreet's Jim Cramer asks why Allergan (AGN) is going down. He thinks there is a perception now, which David Faber has discussed often, that Valeant's  (VRX) hostile takeover may have hit its high water mark.

Cramer says this has occurred because Valeant needs Allergan to get its stock to continue to rise, but Allergan has attacked its pursuer endlessly, which has made some investors stay away from Valeant. Cramer notes the chatter that Valeant could go higher if it walks away from Allergan. TheStreet's Herb Greenberg has repeatedly said Valeant needs to keep doing deals.

Cramer says Valeant has become a no man's land stock and he does not want to touch it. But if Allergan comes down to $140, then Cramer would buy it on earnings alone.

Must Watch: Jim Cramer: Eyeing Allergan Shares, Staying Away From Valeant

EXCLUSIVE OFFER: See inside Jim Cramer’s multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

TheStreet Ratings team rates Allergan 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, solid stock price performance, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

You can view the full analysis from the report here: AGN Ratings Report

AGN ChartAGN data by YCharts

EXCLUSIVE OFFER: See inside Jim Cramer’s multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%