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Specialty Pharma Company Could Reward Traders With a Quick Pop


Allergan (NYSE:AGN) — This California-based specialty pharmaceutical company appears to have it all, including great new products: Botox to treat urinary incontinence and enlarged prostate; DARPin, a new treatment for scalp hair growth; and Voluma, an innovative dermal filler.

It also has $2.9 billion in cash versus $1.5 billion of long-term debt. Analysts’ consensus earnings estimates for 2012 are $4.19, up from $3.01 in 2011. They look for $4.75 in 2013, and S&P sees earnings of $5.55 in 2014.

Last week, the stock broke from a quadruple-top following a nine-month consolidation as it popped from $94 to $98 in two days. Aggressive buyers may want to take a half position now and add on a pullback. Long-term investors could be rewarded by holding for 12 months with a goal of $125. Traders could see a quick move to $106.

Trade of the Day -- Allergan (NYSE:AGN)
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Trade of the Day Chart Key

Article printed from InvestorPlace Media,

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