Piper Jaffray Overweight On Allergan

Piper Jaffray has an Overweight rating and a $91 price target on shares of Allergan Inc. AGN. In a note to clients, Piper Jaffray writes, "We believe Allergan is well-positioned for a solid 2Q, and with strength across a number of franchises, we could see meaningful upside to the Street EPS estimate of $0.95. Further, we are likely to see FDA approval of Botox for neurogenic overactive bladder (nOAB) in the next several months. We believe that Street estimates do not reflect significant contribution from Botox in OAB (both neurogenic and idiopathic). We believe AGN's 2012 P/E of 19x looks reasonable in the context of strong visibility on consistent annual EPS growth at least in the mid-teens. This growth target is achievable even with high-single digit annual growth in R&D spend, and without factoring the fruits of that R&D labor in our estimates (AGN will start to pull back the curtains on these programs at its R&D Day in 1Q12). We reiterate our Overweight rating and $91 PT." Shares of AGN lost 76 cents yesterday to close at $83.25, a loss of 0.9%.