Allergan plc. (AGN) Buy or Sell Stock Guide

Last updated: Dec 24, '18

The analysis below may be helpful to you if you have any of the following questions about AGN stock:

  • Is AGN a buy or a sell?
  • Should I sell or hold AGN stock today?
  • Is AGN a good buy / a good investment?
  • What are AGN analyst opinions, recommendations, ratings?

Here are AGN stock buy reasons/signals:

1. Through acquisitions, Allergan has transformed into a major diversified drug manufacturer with a broad patent-protected portfolio and a healthy drug pipeline.

2. Botox continues to dominate the neuromodulator market with almost 75% market share. Few competitors match Allergan’s product portfolio scope, brand recognition, and loyalty programs in the cosmetic market, and recent therapeutic indications introduce Botox to new areas.

3. Allergan's drug pipeline, including biosimilars, holds potentially large growth opportunities.

4. AGN stock price ($131.41) is at the 52-week low. Perhaps now is a good time to buy?

5. AGN forward dividend yield is 1.85%, higher than the industry (0.05%) and sector (0.14%) forward dividend yields.

6. AGN forward P/E ratio is 9.03, and it’s low compared to its industry peers’ P/E ratios.

7. AGN Price/Book ratio is 0.71, and it’s low compared to its industry peers’ P/B ratios.

8. AGN Price/Sales ratio is 3.12, and it’s low compared to its industry peers’ P/S ratios.

9. AGN average analyst rating is Buy.

10. AGN average analyst price target ($217.95) is above its current price ($131.41).

Here are AGN stock sell reasons/signals:

1. Allergan’s future growth depends on the success of products in development, but some high-risk products have faced developmental challenges, such as the anti-VEGF DARPin currently entering Phase III clinical trials.

2. Lower levels of R&D spending compared with peers puts greater pressure on management to supplement growth through acquisitions. Misallocated capital or integration snafus could lead Allergan astray.

3. Allergan's branded drug franchises in women's health, urology, gastrointestinal, and nervous system markets face high levels of generic competition, which erodes pricing power.

4. AGN quarterly revenue growth was -3.00%, lower than the industry and sector average revenue growth (3.58% and 3.27%, respectively).

5. AGN profitability is declining. The YoY profit margin change was -27.63pp.

What are your thoughts on AGN?

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