Morgan Stanley Upgrade

Morgan Stanley upgrades the stock then sells their position at a massive profit.

Wonder why people listen to Bernie Saunders about capitalism?

 

Disgusting.

 

From today's article on the "TheStreet"...

"Following the company's second-quarter earnings call, we see a clearer vision under new CEO Joe Papa to enhance financial prospects," they said. "We expect management to successfully renegotiate debt covenants for a small amount (estimating $60 million extra annual interest expense), improve operating income & cash flow, and pay down debt."

Morgan Stanley also increased its 12-month price target on Valeant to $42 from $33, basing the valuation on a potential 10% increase in Valeant's trading enterprise value to roughly $44 billion from $39 billion, which the analysts say could help drive shares by as much as 58%.

"Even if Valeant maintains the same enterprise value, we anticipate that deleveraging can drive higher equity value accretion," they added. "Simple math on stability: If we assume that Valeant's enterprise value were to remain constant, each $2 billion in organic (non-divestiture) free cash flow could effectively increase current equity value of $9.3 billion by more than 20%."

 

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