Company Update: Allergan Inc (NYSE:AGN) – Allergan, Pfizer call off $US160B deal

[AAP] – The biggest US-based drugmaker, Pfizer Inc, will stay put thanks to aggressive new Treasury Department rules that succeeded in blocking Pfizer from acquiring rival Allergan and moving to Ireland – on paper – to reduce its tax bill. Pfizer cited Treasury’s new regulations, issued late Monday, to make such “tax inversions” less lucrative. The merger would have moved Pfizer’s address – but not its operations or headquarters – to Ireland, where it would pay far less in corporate taxes. Read more on this. Allergan plc (AGN) , with a current value of $96.70B, opened this morning at $236.39. Today, shares have traded between $236.00 and $247.23 per share with its 52-week range being $226.43 to $340.34. AGN shares are currently priced at 16.44x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s -2.39x earnings multiple. And for those looking to make a return holding the stock, the company pays shareholders $0.20 per share annually in dividends, yielding 0.10%. According to a consensus of 15 analysts, the earnings estimate of $3.10 per share would be $1.20 worse than the year-ago quarter and a $0.55 sequential decrease. Investors should also note that the full-year EPS estimate of $14.39 is a $0.96 improvement when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $4.02 Billion. If realized, that would be a 4.29% decrease over the year-ago quarter. In terms of ratings, Mizuho downgraded AGN from Buy to Neutral (Apr 6, 2016). Previously, Wells Fargo Initiated AGN at to Outperform. Given all the information above, we should disclose to readers that the average price target is $351.60, which is 48.74% above than it opened this morning. See more in (NYSE:AGN) Similar Articles: Market Update (NYSE:AGN): U.S. Treasury rules put Pfizer-Allergan deal in question Stock Update: Allergan Inc (NYSE:AGN) – Exclusive: Teva set to win EU okay for $40.5 billion Allergan deal – sources Stock Update: Allergan Inc (NYSE:AGN) – Allergan and Pfizer to Present at 34th Annual J.P. Morgan Healthcare Conference