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.
Erin Kennedy and Tim Hanson have no position in any stocks mentioned. The Motley Fool recommends Valeant Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Valeant Pharmaceuticals' Stellar 43% Gain in 2017, Explained
Wall Street rewards the embattled Valeant after the company met numerous goals last year.
3 Compelling Reasons Valeant Pharmaceuticals Exploded Higher by 24% in December
Valeant took another step forward on its road to redemption, but it still has a long walk ahead.
Billionaire George Soros Is Betting Big Against These 2 Pharma Stocks
Can Valeant and Teva rebound? George Soros' namesake fund doesn't seem to think so.