Market Insider

Allergan rises as Goldman Sachs says the stock is 'primed for growth'

A clinical technician holds a syringe and a vial of Allergan Botox, produced by Allergan.
Jason Alden | Bloomberg | Getty Images

Allergan rose more than 3 percent Friday after Goldman Sachs released a very bullish note on the stock.

The bank added Allergan to its "Conviction List" as the company has a number of catalyst ahead that have it "primed for growth."

Goldman said in a Friday note:

"Our increased confidence is based on 1) a sharpened business model focused on branded growth pharma; 2) a reloaded balance sheet poised to de-lever from 4X to 1.5X post-TEVA; 3) $10 billion share repo authorization sending a clear signal of management confidence; 4) a double digit topline growth outlook based on volume-driven durable assets including differentiated new products; 5) a rich pipeline with ~70 unique assets featuring several first-in-class and/or best-in-class candidates."

A doctor draws Allergan's Botox into a syringe before administering it to a patient at the offices of Marcus Facial Plastic Surgery in Redondo Beach, California.
Here's why you should buy beaten-up Allergan: Technician

Over the past year, Allergan shares have fallen nearly 25 percent and have shed nearly 30 percent in 2016. This week, however, the stock has advanced more than 10 percent.

AGN in past 12 months

Source: FactSet