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