Aegis Capital Corp. analyst Raghuram Selvaraju has repeated a Buy rating and $180.00 price target on Valeant Pharmaceuticals.
According to Aegis Capital Corp, Recently, Valeant's hedge fund partner Pershing Square Capital Management disclosed that it had reached a stipulation agreement with Allergan, Inc. (AGN/NYSE, Not Rated) on whether or not calling a special shareholder meeting, which can be convened by any shareholder group owning 25% or more of Allergan's stock, would trigger the Allergan poison pill .
He further added,"Allergan stipulated that, indeed, the meeting would not in and of itself trigger the poison pill. In our view, there is now a clear path forward for Valeant. Pershing Square, aided primarily by Paulson & Co., along with T. Rowe Price, is now expected to convene the meeting. This could occur as early as next week, or, if Allergan were to try to delay it, in November. We believe Valeant management have made a compelling enough case to Allergan shareholders that there is a real possibility of unseating the majority, if not all, of the Allergan board at this meeting. We reiterate our Buy rating and 12-month price target of $180.00 per share on VRX.