Goldman Sachs Sees Allergan as Potential Takeover Target, Ups Price Target (AGN)

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Health care products maker Allergan, Inc. ( AGN ) on Tuesday saw its price target boosted by analysts at Goldman Sachs.

The firm raised its target on AGN from $78 to $81, noting the company is the most likely takeover target in the pharma industry, a sector that Goldman expects M&A activity to heat up in soon. That new target represents a potential 23% upside to the stock's Monday closing price of $65.63.

Goldman also said it sees other near-term catalysts for the stock, such as solid upcoming second quarter earnings and a recent U.S. approval of its BOTOX migraine treatment. The firm currently has AGN listed on its prestigious "Conviction Buy" List.

Allergan shares were mostly flat in premarket trading Tuesday.

The Bottom Line
Shares have a .30% dividend yield, based on last night's closing stock price of $65.63. The stock has technical support in the $60 price area. If the shares can firm up, we see overhead resistance around the $69-$70 price levels. We would remain on the sidelines for now.

Allergan, Inc. ( AGN ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: AGN

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