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Allergan sell-off on generic risk an overreaction, says BMO Capital

BMO Capital believes the market is pricing in a "too-pessimistic scenario" with regards to generic competition for Allergan's Restasis. BMO believes the FDA guidance for generic Restasis won't likely be easily met and notes that in a worst case scenario, its price target would still be $106. The firm keeps an Outperform rating on the stock, but admits it does not see near-term catalysts for shares to move higher.