Seven Corners Issues Follow-Up on Allergan (AGN), Reiterates Sell Rating Due to Non-GAAP Accounting Concerns, Sees 50% Downside in Stock

April 18, 2017

  • Allergan’s So-Called "Performance Net Income" Is A Cash-Flow Measure, Not A Net Income Measure.

  • Allergan Has Thumbed its Nose At The SEC, Which Has Warned Against This Type of Misleading Non-GAAP Metric.

  • To Bridge the GAAP (Pun Intended), We Propose a Realistic Calculation of Allergan’s True Economic Earnings.

  • Even Using Extremely Generous Assumptions, Based on Our Non-GAAP Earnings Calculations We Estimate Allergan’s Valuation to be $117 Per Share, Indicating 50% Expected Downside For Its Common Shares. 


To find a PDF containing our full AGN writeup, please visit our Research section (link here).



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