The most recent developments should keep Valeant Pharmaceuticals equity holders on the sidelines, Wells Fargo analyst David Maris tells investors in a research note after the company said it received a notice of default from holders of its 5.5% Notes. The bigger story behind the notice of default is not the notice itself, but what this says about where the equity holders are falling in the lineup of stakeholders at Valeant, Maris contends. The analyst believes the debtholders have assured themselves that proceeds from large divestitures will go to debt pay down. Maris does not see potential asset sales benefitting equity holders, saying lower debt levels will be offset by lower EBITDA and lower earnings. The analyst also believes that Valeant's Bausch & Lomb unit is likely worth less than the company paid for it given the reduction in R&D programs, lack of tax synergies and a lowered market outlook. Maris remains uncertain over whether Valeant can make its debt payments in outer years without significant refinancing in 2018. He keeps an Underperform rating on the shares with a $30-$31 price target range. The drugmaker closed yesterday up 63c to $31.98.