“We apply a 63% EBITDA margin reported for to arrive at ~$630M (or ~8%) in 2018 estimated adj. EBITDA to be divested away. If we apply a 9x EBITDA multiple to these assets, we would arrive at a sale price of $5.67B, which could improve gross leverage to ~2.9x EBITDA, from 3.4x currently. This is likely aspirational, and it sounds as if management may be willing to divest these assets for even lower multiples, but will attempt to offset dilution via share buybacks. Management is targeting a net leverage ratio of 2.5x by 2020, and indicated that the company plans to use a portion of its sale proceeds towards new assets, so we expect another M&A wave from Allergan in the next 6-12 months. Going forward, mgmt. indicated the company would focus on commercial and scientific investments in its core areas: and CNS.”,” the firm’s analyst wrote.
Other equities analysts have also issued reports about the stock. Wells Fargo & Co reaffirmed a buy rating on shares of Allergan in a research note on Thursday, May 17th. Cantor Fitzgerald reaffirmed a hold rating and issued a $180.00 target price on shares of Allergan in a research note on Monday, May 7th. Credit Suisse Group reduced their target price on shares of Allergan from $215.00 to $213.00 and set an outperform rating for the company in a research note on Thursday, May 3rd. ValuEngine downgraded shares of Allergan from a sell rating to a strong sell rating in a research note on Wednesday, May 2nd. Finally, Bank of America reduced their price objective on shares of Allergan from $213.00 to $209.00 and set a buy rating for the company in a research note on Tuesday, May 1st. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and fifteen have issued a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average target price of $212.15.
Allergan (NYSE:AGN) last issued its earnings results on Monday, April 30th. The company reported $3.74 EPS for the quarter, beating the consensus estimate of $3.36 by $0.38. The company had revenue of $3.67 billion during the quarter, compared to analysts’ expectations of $3.59 billion. Allergan had a negative net margin of 11.94% and a positive return on equity of 8.53%. The business’s revenue for the quarter was up 2.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.35 EPS. equities analysts expect that Allergan will post 16.06 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, June 15th. Shareholders of record on Friday, May 18th will be given a dividend of $0.72 per share. The ex-dividend date of this dividend is Thursday, May 17th. This represents a $2.88 dividend on an annualized basis and a dividend yield of 1.66%. Allergan’s payout ratio is presently 17.61%.
In other Allergan news, EVP William Meury sold 24,425 shares of the stock in a transaction that occurred on Thursday, May 17th. The shares were sold at an average price of $154.59, for a total transaction of $3,775,860.75. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 0.37% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of AGN. Avestar Capital LLC acquired a new stake in shares of Allergan during the 4th quarter worth approximately $113,000. Focused Wealth Management Inc boosted its position in shares of Allergan by 4,444.4% during the 4th quarter. Focused Wealth Management Inc now owns 818 shares of the company’s stock worth $134,000 after acquiring an additional 800 shares in the last quarter. Captrust Financial Advisors acquired a new stake in shares of Allergan during the 4th quarter worth approximately $175,000. Dowling & Yahnke LLC acquired a new stake in shares of Allergan during the 4th quarter worth approximately $205,000. Finally, Hyman Charles D acquired a new stake in shares of Allergan during the 4th quarter worth approximately $206,000. Institutional investors and hedge funds own 79.43% of the company’s stock.
Allergan plc, a specialty pharmaceutical company, develops, manufactures, markets, and distributes medical aesthetics, biosimilar, and over-the-counter pharmaceutical products worldwide. It operates through US Specialized Therapeutics, US General Medicine, and International segments. The company offers a portfolio of products that provide treatment for the central nervous system, gastroenterology, women's health and urology, ophthalmology, neurosciences, medical aesthetics, dermatology, plastic surgery, liver disease, inflammation, metabolic syndromes, and fibrosis, as well as Alzheimer's disease.
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