This Clear Catalyst Sent Valeant Pharmaceuticals Intl. Inc. 18% Lower in August
Shares of Valeant Pharmaceuticals (NYSE: VRX), a drugmaker that has predominantly grown via acquisitions over the years, plunged by 18% during August, according to data from S&P Global Market Intelligence. The standout reason for Valeant's poor performance looks to be its Aug. 8 second-quarter earnings release.
On the surface, Valeant Pharmaceuticals delivered a number of key improvements in its second quarter. To begin with, the company's two core operating segments both delivered strong organic growth. Organic sales at Bausch & Lomb grew by 6%, while Salix Pharmaceuticals, which specializes in drugs to treat gastrointestinal disorders, delivered 16% organic sales growth. It's no secret that Valeant needs its core businesses to grow in order for the company to once again grow its EBITDA (earnings before interest, taxes, depreciation, and amortization) and to pay down its $28.5 billion in debt, as of the end of Q2. This recent quarter suggests there's hope of EBITDA stabilization and possibly growth in the future.
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Source: Fool.com
Bausch Health Companies Inc. Stock
Currently there is a rather positive sentiment for Bausch Health Companies Inc. with 3 Buy predictions and 0 Sell predictions.
Based on the current price of 7.26 € the target price of 16 € shows a potential of 120.39% for Bausch Health Companies Inc. which would more than double the current price.
