AGN

Allergan PLC

Healthcare


Presented:05/18/2017
Price:$218.73
Cap:$73.30B
Current Price:$193.02
Cap:$63.36B

Presented

Date05/18/2017
Price$218.73
Market Cap$73.30B
Ent Value$107.80B
P/E Ratio7.52x
Book Value$209.35
Div Yield1.27%
Shares O/S335.10M
Ave Daily Vol2,665,904
Short Int2.16%

Current

Price$193.02
Market Cap$63.36B
Allergan Plc engages in the research, development, and manufacture of pharmaceutical products. It operates through the following segments: US Specialized Therapeutics; US General Medicine, and International. The US Specialized Therapeutics segment includes sales and expenses relating to branded products within the United States. The US General Medicine segment involves Central Nervous System; Gastrointestinal; Women's Health; Anti-Infectives; and Diversified brands. The International segment comprises of products sold outside the United States. The company was founded on in 1984 and is headquartered in Dublin, Ireland.

Publicly traded companies mentioned herein: Allergan PLC (AGN), Shire PLC (SHPG)

Highlights

Allergan’s stock (AGN) is down ~10% since the company reported what the presenter views as relatively solid Q1 2017 earnings (5% revenue growth, 12.5% EPS growth) in early May (2017). The presenter is long, and in his opinion the risk/ reward is favorable at ~$220. Shareholders should see at least 20-25% upside over the next 12-24 months based on continued growth and multiple expansion. Additionally, AGN’s aesthetics business covers “most” of the current value of the company and there is optionality in the pipeline. In his opinion, Street analysts and shareholders who are “picking on” AGN’s FCF generation coming in at the low end of an acceptable range are missing the big picture. AGN remains on-track to deliver at least $18/ share of earnings in 2018, and as this it becomes more apparent the stock should trade up toward $270 (assuming a 15x multiple).

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Idea Discussion

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