Valeant Falls 9.7% as Analyst Says Sell, Questions Strategy
- Wells Fargo cites accounting `opaqueness,' debt levels
- Maris sets target price as much as 24% below Friday close
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Valeant Pharmaceuticals International Inc. fell 9.7 percent after a Wells Fargo analyst initiated coverage of the stock with an underperform rating, citing “unanswered questions” about the drugmaker’s accounting methods and strategic direction.
“The Valeant board and management have made decisions that may have put Valeant at significant business and reputational risk,” David Maris said Friday in a research note. “While it is often noted that Valeant’s management team has created a huge amount of value, our perspective is different: Valeant has lost approximately $60 billion of market value from its peak, yet its current market value is approximately $30 billion.”