Valeant shares gain the most in six months on Tuesday, company’s full-year adjusted EBITDA forecast revised up

Valeant Pharmaceuticals International Inc (VRX) revised up its full-year adjusted EBITDA projection to a range between $3.6 billion and $3.75 billion. In comparison, the companys EBITDA forecast in February had pointed to a range between $3.55 billion and $3.7 billion.

Valeants US-listed shares registered their largest daily surge since November 1st 2016 during Tuesdays trading session. The stock went up 24.10% ($2.34) to $12.05, after touching an intraday high at $12.43, or a price level not seen since March 13th ($12.55). In the week ended on May 7th the shares of the pharmaceutical and medical device company added 8.86% to their market value compared to a week ago, which marked a second consecutive period of gains and also the best performance since the week ended on August 21st 2016. The stock has extended its advance to 30.27% so far during the current month, following a 16.14% retreat in April. The latter has been a second consecutive month of losses. For the entire past year, Valeants NYSE-listed shares plummeted 85.72%.

The companys adjusted EBITDA was reported to have reached $861 million during the first quarter, while outstripping the median analyst estimate ($854.9 million).

In addition, the pharmaceutical giant has managed to slash debt by $1.3 billion during the first three months of the year.

“Our divestiture efforts and cash flow generation have led to a $3.6 billion reduction in total debt to date, since the end of the first quarter of 2016″, Joseph C. Papa, Valeants chairman and Chief Executive Officer, said in a statement, cited by Business Insider. “We met our internal expectations, and we are continuing to make progress on our key initiatives.”

As of the end of 2016, the drug makers total debt had been $30 billion.

According to CNN Money, the 16 analysts, offering 12-month forecasts regarding Valeant Pharmaceuticals’ stock price, have a median target of $15.50, with a high estimate of $45.00 and a low estimate of $8.00. The median estimate is a 28.63% surge compared to the closing price of $12.05 on May 9th.

The same media also reported that 13 out of 20 surveyed investment analysts had rated Valeant’s stock as “Hold”, while 2 – as “Buy”. On the other hand, 3 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Valeant stock (NYSE) are presented as follows:

R1 – $12.22
R2 – $12.39
R3 (Range Resistance – Sell) – $12.56
R4 (Long Breakout) – $13.07
R5 (Breakout Target 1) – $13.67
R6 (Breakout Target 2) – $14.17

S1 – $11.88
S2 – $11.71
S3 (Range Support – Buy) – $11.54
S4 (Short Breakout) – $11.03
S5 (Breakout Target 1) – $10.43
S6 (Breakout Target 2) – $9.93

By using the traditional method of calculation, the weekly levels of importance for Valeant Pharmaceuticals International Inc (VRX) are presented as follows:

Central Pivot Point – $10.00
R1 – $10.65
R2 – $11.22
R3 – $11.87
R4 – $12.51

S1 – $9.43
S2 – $8.78
S3 – $8.21
S4 – $7.63