UPDATE: Piper Jaffray Lowering Price Target On Valeant Pharmaceuticals

Piper Jaffray is out with a research report on Valeant Pharmaceuticals VRX and is lowering its price target to $51 from $65, but is keeping its Overweight rating on shares. In a note to clients, Piper Jaffray writes, "Yesterday, Valeant reported cash EPS of $0.66 (not including a gain of $0.06 related to the ownership of Cephalon shares). Though management tempered its revenue outlook in 2H11, and though organic growth is a bit lower than Street expectations, we believe yesterday's sell-off was excessive. We believe that 2012 EPS, inclusive of the impact of recent acquisitions, will be near $4.00 even with tempered expectations for the high-margin, but mature U.S. neurology business. With continued healthy double-digit growth for the overseas generics business, Canada and Australia, plus high potential for continued deal activity in fragmented spaces (i.e., emerging market generics and dermatology), we believe a 2012 P/E of 12x (a more modest premium to VRX's peer group) is appropriate, pointing to a bounce back for VRX shares." Shares of VRX lost $11.41 yesterday to close at $40.85, a loss of 21.83%.