UPDATE: Stifel Downgrades Allergan as Company is Now on the Defensive

In a report published Monday, Stifel analyst Annabel Samimy downgraded the rating on Allergan (NYSE: AGN) from Buy to Hold, and removed the $125.00 price target.

In the report, Stifel noted, “In the midst of the Specialty Pharma M&A frenzy, we believed AGN's inactivity would eventually make them vulnerable to investor discontent. Ackman/VRX's unprecedented hostile bid to acquire AGN has exposed this, and though we are not convinced that an AGN/VRX combination is the eventuality (given AGN's resistance to overtures), this has clearly put the company on the defensive and accelerated the need to take transformative action.

"We believe AGN remains a premier company in the Specialty Pharma space with sufficient flexibility to make wise capital allocation decisions, but +50% YTD (+44% since Monday) has us moving to the sidelines at these levels. Downgrade to Hold.”

Allergan closed on Friday at $168.15.