Mallinckrodt’s (MNK) Hold Rating Reaffirmed at Mizuho

Mallinckrodt (NYSE:MNK)‘s stock had its “hold” rating reiterated by stock analysts at Mizuho in a report issued on Thursday. They presently have a $15.00 price target on the stock. Mizuho’s target price indicates a potential upside of 10.38% from the company’s previous close.

The analysts wrote, “We expect briefing documents to get posted on May 1. We are cautious heading into the panel for a number of reasons outlined below, and note that it represents the first read on the quality of the company’s due diligence process following its recent string of acquisitions that are aimed to diversify revenues away from Acthar. We reiterate our Neutral rating and $15 PT. Stannsoporfin vote has a reasonable amount of risk: (1) The NDA submission is based on results from a positive pivotal Phase 2b trial and supporting data from a second positive Phase 2b trial. (2) The pivotal trial evaluated two doses (3.0 mg/kg and 4.5 mg/kg), which did not show a dose response effect. (3) We don’t know much about safety or risk/reward in this fragile patient population. From a commercial standpoint, it is unclear to us if the drug will need to be dosed preventatively, or if can be used as a rescue med.””

A number of other research firms also recently commented on MNK. Leerink Swann initiated coverage on shares of Mallinckrodt in a research report on Tuesday, January 2nd. They set a “market perform” rating and a $26.00 price target on the stock. Cantor Fitzgerald set a $42.00 price target on shares of Mallinckrodt and gave the stock a “buy” rating in a research report on Monday, January 1st. ValuEngine downgraded shares of Mallinckrodt from a “hold” rating to a “sell” rating in a research report on Monday, April 2nd. SunTrust Banks initiated coverage on shares of Mallinckrodt in a research report on Wednesday, April 11th. They set a “hold” rating and a $15.00 price target on the stock. Finally, Canaccord Genuity set a $20.00 price target on shares of Mallinckrodt and gave the stock a “hold” rating in a research report on Tuesday, March 6th. Three equities research analysts have rated the stock with a sell rating, thirteen have given a hold rating and five have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $33.83.



Mallinckrodt stock traded up $0.24 during midday trading on Thursday, reaching $13.59. 1,282,958 shares of the stock traded hands, compared to its average volume of 3,654,188. The company has a quick ratio of 1.85, a current ratio of 2.18 and a debt-to-equity ratio of 0.98. The firm has a market capitalization of $1,157.96, a price-to-earnings ratio of 1.81, a PEG ratio of 0.33 and a beta of 1.12. Mallinckrodt has a fifty-two week low of $13.05 and a fifty-two week high of $49.12.

Mallinckrodt (NYSE:MNK) last posted its earnings results on Tuesday, February 27th. The company reported $2.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.72 by $0.29. Mallinckrodt had a net margin of 66.25% and a return on equity of 13.43%. The firm had revenue of $792.30 million during the quarter, compared to analyst estimates of $769.91 million. During the same period in the previous year, the business posted $1.91 EPS. Mallinckrodt’s revenue was down 4.5% on a year-over-year basis. research analysts expect that Mallinckrodt will post 6.16 earnings per share for the current year.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State of Alaska Department of Revenue bought a new stake in shares of Mallinckrodt in the 4th quarter worth approximately $129,000. Cubist Systematic Strategies LLC raised its holdings in shares of Mallinckrodt by 748.1% in the 3rd quarter. Cubist Systematic Strategies LLC now owns 7,989 shares of the company’s stock worth $299,000 after purchasing an additional 7,047 shares in the last quarter. Amundi Pioneer Asset Management Inc. bought a new stake in shares of Mallinckrodt in the 4th quarter worth approximately $190,000. Sciencast Management LP bought a new stake in shares of Mallinckrodt in the 4th quarter worth approximately $210,000. Finally, CIBC World Markets Inc. bought a new stake in shares of Mallinckrodt in the 4th quarter worth approximately $231,000.

About Mallinckrodt

Mallinckrodt public limited company develops, manufactures, markets, and distributes branded pharmaceutical products in Canada and the European Union, as well as in Latin American, the Middle Eastern, African, and the Asia-Pacific regions. The company markets branded pharmaceutical products for autoimmune and rare diseases in the specialty areas of neurology, rheumatology, nephrology, ophthalmology, and pulmonology; and immunotherapy and neonatal respiratory critical care therapies, as well as analgesics and gastrointestinal products.

Analyst Recommendations for Mallinckrodt (NYSE:MNK)

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