Real Money Stock of the Day AbbVie (ABBV) - Get Report agreed to pay for struggling Botox maker Allergan (AGN) - Get Report in a $63 billion cash-and-stock deal, leading some investors to ask, "Was it worth it?"
Action Alerts PLUS senior analyst Jeff Marks shared his thoughts around the price tag.
"I don't think AbbVie overpaid, now AbbVie is getting crushed today, clearly, investors don't like the news," Marks said.
In analyzing the deal, Marks said that what stood out to him was earnings accretion, synergies and cashflow for the new company.
"When you have one stock, AbbVie, which was in a downtrend and Allergan, which was in the downtrend for awhile, putting them together, I think there's going to be some skepticism there. So I think that's what you're seeing today in AbbVie. But, again, I think that the numbers kind of create a compelling case, but we'll have to wait and see there," Marks said.
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