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Wednesday’s analyst upgrades and downgrades Add to ...

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Inside the Market’s roundup of some of today’s key analyst actions

Valeant Pharmaceuticals International Inc. (VRX-N, VRX-T) remains “challenged for growth,” said Canaccord Genuity analyst Neil Maruoka in a third-quarter review.

“Valeant reported third quarter results that were in line with our estimates on revenue, but missed on the bottom line,” said Mr. Maruoka. “In and of itself, we did not feel that the quarter was terrible; however, the company updated its 2016 financial guidance to a level well below consensus expectations. What’s more, on the conference call, management indicated that 2017 revenue and EBITDA should be lower on a sequential basis. While the 2016 guidance revision was widely expected, both the magnitude and spill-over into next year was not, and we believe investors are now fleeing the stock as the path to growth has grown murkier. With this kitchen sink quarter, the company has pressed the reset button on financial performance expectations; however, we continue to see too many risks on the road to recovery to allow us to recommend investors buy the stock.”

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