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Takeaway: Our analysts have been bearish on Valeant for almost two years. Meanwhile, Wall Street's VRX price target implies 257% upside. Okay.

We Think Valeant Still Has Over 40% Downside | $VRX - Ackman cartoon 10.26.2015

Ka-boom ... Shares of Valeant Pharmaceuticals (VRX) were cut in half today after the company cut its 2016 revenue forecast by 12% and said a delay in filing its annual report could pose a debt default risk. Our Healthcare analysts Tom Tobin and Andrew Freedman have been warning about the company's "unsustainable business model" for a while now.

Here's the "VRX | Bear Case $20" note in its entirety:

We Think Valeant Still Has Over 40% Downside | $VRX - valeant

Never fear Valeant shareholders! Wall Street consensus still sees 257% upside from here.

Click to enlarge

We Think Valeant Still Has Over 40% Downside | $VRX - valeant price target

Now, that's obviously ridiculous. But so is the sell side's track record for predicting a VRX price target. Check out the chart below. Keep in mind that Valeant shares currently trade around $35. 

We Think Valeant Still Has Over 40% Downside | $VRX - graph valeant