From: "Ens, Amanda" < 1:, To: "[email protected]" <[email protected]> Cc: Richard Kahn Subject: RE: Preferreds, thoughts on fixed income, mandatory converts Date: Mon 08 Aug 2016 19:53:06 +0000 Attachments: AGN_8.08.2016.pdf; Revision_Ratios.pdf Inline-Images: image005.png; image010.jpg; image01 1 jpg: image014.jpg; image015.jpg: iniage016jpg; image017.jpg; imagc018.jpg; image019.jpg; image020jpg; image021.gif: image00Ljpg I should also note that healthcare is the one sector with Improving Earnings Revision Ratios, Sales Revision Ratios and Management Guidance Ratios. Here's our post-earnings report for AGN. Allergan Ok quarter• weakness presents particularly good opportunity Reiterate Rating: BUY P0:204.00 USD I Price: 253.85 USD Equity 108 August 2016 Key takeaways • AGN reported 2O16 adj. EPS of $3.35 beating our estimate of $3.26 (ex. Anda) and consensus of $3.30. • Revenue was modestly lighter but. higher gross margin/lower tax rate helped drive the beat vs. our model. • We like AGN due to healthy product mix/pipeline and flexibility to depby capital, and believe weakness presents opportunity. Noisy as we expected, reiterate Buy AGN reported 2O16 adj. EPS from continuing operations of $3.35, which beat our estimate of $3.26 (ex. Anda distribution) and consensus of $3.30 (may not have been on the same basis). While revenue was modestly lighter (-$46mn), higher gross margin and lower tax rate helped drive the beat vs. our model. Given the moving parts (generics and distribution businesses being divested to Teva), there was some 'noise" in the numbers as yaajnantated. That said, we were not too surprised by AGN's 2016 outlook, which came in largely as we expected vs. our model going into 2O. We continue to believe AGN is well positioned with a product mix that includes lucrative/sticky franchises (eg, Botox). several launches in 2016+, a robust pipeline of 65+ programs, and today's weakness presents a particularly good buying o