Valeant Pharmaceuticals Intl Inc (NYSE: VRX)
Keep a close eye on Valeant Pharmaceuticals at the moment, as news is currently hitting that could lead to big declines. Today, we’ll talk about the news, what we’re seeing in the market at the moment, and what we can expect to see from VRX ahead.
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Piper Jaffray Sends Warning Surrounding VRX
As mentioned above, Valeant Pharmaceuticals may soon be facing big headwinds in the trading session. The headwinds are likely to come as the result of a warning received from Piper Jaffray, a well respected firm.
Piper Jaffray weighed in on VRX, warning investors of “significant downward guidance revision(s).” The firm maintained the “Underweight” rating on the stock with a price target of $22 per share.
How The Market Reacted To The News
At the moment, VRX is continuing through the day with business as usual. Currently (1:12), the stock is trading at $22.22 per share after a gain of $0.16 per share (0.73%) thus far today. However, the news is just coming down the wire now and has not broke quite yet. When this news hits the limelight, we could see a big shift toward the negative direction.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion of what we can expect to see from Valeant Pharmaceuticals. In the short- and mid-term, the company is likely to continue to see volatility as investors ponder the financial implications of legal filings following the Philidor scandal.
On the other hand, since the scandal, VRX has made several big changes to the company. In fact, they can be viewed as a brand new company starting with the solid foundation of incredible products. In the long run, I believe that this will allow the company to stay afloat through the rough legal times ahead, likely leading to big long-run gains!
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