It was just revealed that “Broadway” Bill ‘Montauk’ Ackman upped his retarded sized VRX position from 8.5% to 9% yesterday. Today, Wells Fargo did a Larry David “eh, not impressed”, starting the drug maker with an underperform, affixing a price target of $65-68 to it.
Wells Fargo analyst David Maris started Valeant Pharmaceuticals (VRX) with an Underperform rating and $65-$68 price target range. The drugmaker closed yesterday down 58c to $94.07. Valeant has not explained how the unwinding of Philidor, which represented 6.8% of revenue, results in a 36.6% reduction in earnings, Maris tells investors in a research note. The analyst rolled out coverage of ten companies in the Specialty Pharmaceuticals space, eight of them with Outperform ratings. Valeant is his only Underperform rated name in the space. His focus Outperform calls are on Teva (TEVA) and Amphastar Pharmaceuticals (AMPH)
There are so many hedge funds wrapped up in VRX. If someone ever wanted to inflict maximum damage to the industry, they’d just have to target VRX as a way to communicate with them.
VRX is down almost 4% in the pre-market.
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I hope a big fund gets short going into Jan of next year just to fuck Ackman on his short puts.