UPDATE: Credit Suisse Downgrades Allergan

Allergan (NYSE: AGN) on Tuesday was downgraded to Neutral from Outperform by Credit Suisse due to a balanced risk/reward profile following the latest takeover offer from Valeant Pharmaceuticals International.

Stating that the latest Valeant Pharmaceuticals offer warrants consideration, Credit Suisse analyst Vamil Divan says completion of this deal may require a price closer to $190-200/share. The latest offer from Valeant Pharmaceuticals puts the price around $183/share, excluding the contingent value rights of up to $25/share, which is close to what Divan believes Allergan shareholders are looking for.

Divan notes risk to Allergan stock could arise if Valeant Pharmaceuticals walks away.

Allergan shares are down about 1.7 percent to $169.20 in Tuesday's session.