Is Allergan Stock Finally Going To Reward Shareholders?

Allergan Stock has been a painful ride for investors. Starting last year when the proposed merger with Pfizer fell through, Allergan (NYSE: AGN) stock has fallen. As of this writing, shares are trading at $186 and nearing their 52 week low.

But the interesting thing about Allergan stock is that they have a lot going for it and most analysts agree. In this post, I will show you all of the great things going on with this company and what might be some of the things holding the stock back.

Things Going Right For Allergan Stock

As I mentioned, Allergan has a lot going for it. Looking first at earnings, the company reported earnings per share of $4.02 which beast estimates by $0.10. Revenues came in at $4 billion, also beating estimates, this time by $70 million. This was an increase of 9%.

And this growth isn’t expected to slow. Analysts expect earnings growth of 13% over the next 5 years.

What is fueling this growth? First are the drugs Botox and Juvederm. Both are seeing increases in sales and these 2 treatments only account for around 10% market share in their respective segments. In other words, there is a lot of room for future growth.

In addition to these, Allergan has 6 drugs in it pipeline that are getting rave reviews and if they pass through clinical trials, are expected to be revenue machines.

Here are the 6 drugs:

Next up is international sales growth. During its recent earnings report, international sales are up over 16%, with China leading the way with growth of 61%. Most analysts agree that this speed of international growth should continue.

Finally, Allergan has decided to institute a share buyback program of $2 billion and has raised revenue guidance for the remainder of 2017. Add to this some analysts have a price target of $275 per share, which leaves a lot of room for price appreciation.