Piper Jaffray Downgrades Allergan To Neutral

According to Piper Jaffray, Allergan AGN reported 2Q11 EPS of $0.96, beating the Street estimate of $0.95, driven by continued strength for Botox, the eye care business and facial aesthetics. Piper Jaffray said that though management has positioned the company for sustained annual double-digit EPS growth, the increasingly difficult macroeconomic environment and perception of greater risk surrounding the aesthetics business is likely to put the brakes on further P/E expansion. “As such, we are downgrading AGN to a Neutral from an Overweight, and lowering our price target to $89 from $91 (reflecting higher estimates for expenses).” Allergan closed yesterday at $79.79.