Beauty is More than Skin Deep
Allergan Inc., is a health care co. that develops pharmaceuticals, biologics and medical devices. The Company’s segments include ophthalmic products; Botox for therapeutic and aesthetic indications; skin care products; urologic products and medical devices.
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As can be seen in the chart below, Allergan has a long history of stable, predictable and growing earnings. Assuming a continuation of the trend in earnings, the shares are attractively valued and should be able to reach our high valuation target.
We recommend a full position (5.0%) for this dividend stock.
Purple Chips 12 -18 month target: $USD 110.00
LOW VALUATION IN ALLERGAN AT $USD 91.00 (AGN $90.89) FULL POSITION
PURPLE CHIPS TARGET: $110.00 POSITION SIZE: FULL (5.0%) P/E: 19.8X DIV: $.20 (.22%) MKT CAP: $27B Debt:Nil (Cash:$1.3B) RETURN ON CAPITAL: 39.5% EARNINGS YIELD: 6.3% 5 YR EPS Growth rate*:13.3% P/E/G Ratio: 1.55X EPS: $4.58 2014 EST.: $5.41 2015 EST.: $5.85
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
