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Thursday, March 28, 2024

Mallinckrodt Shares Rally As BMO Initiates At Outperform

Courtesy of Benzinga.

Still in the target of short sellers, Mallinckrodt PLC (NYSE: MNK) got a positive note from the sell-side coverage Wednesday morning. BMO Capital Markets initiated the specialty pharmaceutical name with an Outperform rating and $84 price target.

The four parts of their outperform thesis for Mallinckrodt where:

  • Execution of driving increasing volume growth in specialty branded assets through M&A, including: Acthar, INOmax, Therakos, Ofirmev
  • Acthar stability with payers and further growth strategy with enhanced promotional efforts and data set.
  • Underappreciated hospital business that continues to grow and achieve better scale with durable revenue.
  • An attractive valuation relative to earnings power, with ability to continue solid cash flow generation.

With low sector expectations, BMO believes Mallinckrodt provides an investment opportunity as the sector has seen a recent downturn.

Shares of Mallinckrodt were trading up 6.69 percent at $59.99.

Latest Ratings for MNK

Date Firm Action From To
Jun 2016 BMO Capital Initiates Coverage on Outperform
Jun 2016 Goldman Sachs Initiates Coverage on Neutral
May 2016 JP Morgan Maintains Neutral

View More Analyst Ratings for MNK


View the Latest Analyst Ratings

Posted-In: BMO Capital MarketsAnalyst Color Biotech Initiation Analyst Ratings General

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