Valeant Crossed $20 Today; Rodman & Renshaw Sees Shares Getting To $90

It’s not often that a Wall Street analyst will set a price target for a big-name stock that represents nearly 300 percent upside. But in a new research note, Rodman & Renshaw’s Raghuram Selvaraju did just that when he set a $90 price target for Valeant Pharmaceuticals Intl Inc (NYSE: VRX).

The aggressive Selvaraju price target may be the driving force behind Valeant’s 12.5 percent surge in Wednesday’s session. The target may have also spooked Valeant shorts and triggered a squeeze.

The move also may have been feuled by technical buying at the $20 level.

“In our view, July is shaping up to be a busy month for Valeant, given the potential for three regulatory decisions in the coming weeks,” Selvaraju explains.

Related Link: 5 Stocks Cut In Half In 2016

First, the FDA advisory committee s set to review Valeant’s BLA for brodalumab on July 19.

Valeant is also expecting an FDA ruling on oral Relistor for opioid-induced constipation on July 19.

Finally, Valeant is expecting an approval decision on Vesneo for treatment of glaucoma on July 21.

“In our view, [Vesneo] is the highest likelihood approval event for Valeant, and we consider Vesneo to have >$500M peak sales potential in the U.S. alone,” Selvaraju notes.

Despite the 12 percent Wednesday surge, Valeant remains down 78.1 percent in 2016.

Disclosure: the author holds no position in the stocks mentioned.