Ahead of Valeant's Q2 earnings report and business update on August 9, Wells Fargo analyst David Maris said the focus this quarter will be on cash generation and whether the trajectory points to debt covenant violations in 2017 or not. Maris expects smaller asset sales to be announced, but continues to think asset sales are negative for equity investors, since they will help the company delever but also result in reduced earnings and cash flow. With no meaningful change in U.S. prescription trends being seen, Maris said he sees the company's FY17 EPS as being at risk and keeps an Underperform rating on the stock.