Chris Lau
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Chris Lau in Value Stocks,

Valeant Falls Below Value Group's $15.72 Downside Price Target

Valeant’s poorly-received quarterly result pushed the stock to the lower-end of my price target ($15.68), established on October 5. The company took a $1B goodwill write-down and missed a few $500 million items. This includes revenue, EBITDA, and the forecast. R&D spend was flat at $100M. The only bright spot did not suggest significant growth: B+L’s sales grew in the single digits.

What a Valeant Shareholder has on hand:

Tipranks picked up my last write-up on Valeant as a “sell.” The average return on VRX is 28%:

Tipranks could not record my notes in the value investing forum on avoiding the stock. VRX is not one of the 3-4 biotech stocks in the ideal top stock holdings. One day it could be, but not this quarter.

Other notable calls include Radcom (RDCM), Corning (GLW), Ubiquiti Networks (UBNT).


An update on Valeant is forthcoming. Real-time alert followers will get an email when this is published here. I will update my upside target price (previously at $29 - $32.68).

Separately, Endo International (ENDP) reported a robust quarter but guided lower. It cited - you guessed it - generic drug competition has a headwind. Look for pressure rising for PRGO, AGN, and MYL.