AGN - Embedded Expectations Analysis - 2018 11 26
Allergan plc (AGN:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 7.1x Uniform P/E, implying bearish expectations for the firm. Meanwhile, management may have concerns about their performance across key brands, cash flow generation, and refinancing of their debtSpecifically, management may lack confidence in their ability to maintain strong growth and performance across their key brands, and to sustain momentum going forward. Additionally, they may lack confidence in their ability to sustain their strong cash flow generation, and to meet their FY 2018 net income targets. Also, they may be concerned about the value of their Anti-Infective and Women's Health businesses, and about the timeline of the potential divestiture. Moreover, they may be concerned about the capital deployment of proceeds from the sale of their Medical Dermatology assets. Also, they may lack confidence in their ability to capitalize on the need for approved geographic atrophy and neuroprotection treatments, and may be exaggerating the success of their first Phase III study for their Bim SR glaucoma product. Furthermore, they may be concerned about potential safety issues regarding their Ozurdex treatment, and appear concerned about the refinancing of their debt
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