Why Valeant Pharmaceuticals Shares Jumped Today

Valeant Pharmaceuticals (NYSE: VRX  ) impressed investors today by announcing strong guidance for 2014. The drugmaker expects earnings and revenue to come in about 40% higher than the previous year. Shares climbed as much as 10% in trading, hitting a new 52-week high.

Tim Hanson of Motley Fool Asset Management likes Valeant's lofty aspirations. He sees the company increasing cash flow by integrating its purchase of Bausch & Lomb, while revenue growth will likely come from new pharmaceutical products as well as another successful acquisition. 

However, Tim thinks the stock looks a little pricey at the moment. Furthermore, Valeant depends on acquisitions for growth, and though it boasts a good track record there, that's not always guaranteed.

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