We took Wall Street analysts to task last week for suggesting beleaguered Valeant Pharmaceuticals (VRX) shares still had 150% upside. Sadly, not much has changed.
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VRX is trading around $74. Shares are down almost 72% from its August high. Here's the current breakdown of the 25 Wall Street analysts covering the stock:
- 65% currently rate VRX a Buy (unchanged from last week)
- The average analyst price target is $180 (versus $199)
- That implies approximately 144% upside (down from 150%)
To be clear, the negativity surrounding Valeant is worse today than it was when last we checked in on Old Wall. Concerns about insider selling, no update from management on VRX's longer-term outlook, and the legal question mark surrounding its partnership with pharmacy Philidor loom large over the stock.
Hedgeye's Healthcare analysts released a research note to institutional subscribers last week outlining why we think shares are worth $20. To be clear, we’ve long been skeptical.
CLICK HERE to read their original Short thesis on VRX from 7/22/14.