Saying 'things can always get worse,' Wells cuts Valeant price target
Wells Fargo analyst David Maris lowered his estimates for Valeant Pharmaceuticals following the company's Q1 results and cut his price target range for the shares to $17-$22 from $25-$30. The embattled drugmaker closed yesterday down 14% to $24.67 after cutting its outlook for 2016. "Sometimes something is so complex and so persistently negative that people become fatigued by it," leading to stock buying on the belief that things can't get worse, Maris tells investors in a post-earnings research note. "Things can always get worse," he reminds investors. Maris believes this is the case for Valeant. "There was really nothing in the quarter that was a bright spot," he argues. Further, the analyst believes Valeant may face "significant challenges" to meet its debt obligations in 2020. He keeps an Underperform rating on the shares.