Mallinckrodt (MNK) Cut to “Hold” at Zacks Investment Research

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Mallinckrodt (NYSE:MNK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Thursday.

According to Zacks, “The year 2018 is expected to be a transformative year for Mallinckrodt as the company strives to revive its product portfolio/pipeline. The hospital franchise (Inomax and Ofirmev) has gained traction which is positively impacting sales. The company also upped its annul guidance. The Sucampo buyout will diversify the company’s portfolio considering Amitiza’s potential. The company is currently streamlining its business to focus better on its innovative medicines and therapies like terlipressin and StrataGraft. The recent restructuring efforts are encourgaing as the company has been in troubled waters for quite some time now. However, sales of Acthar continue to decline due to the residual impact of patient withdrawal issues thereby adversely impacting the top-line as the drug is the lead product of the company. The CRL for  stannsoporfin was disappointing. Shares have outperformed the industry in the year so far.”

A number of other research firms have also recently weighed in on MNK. B. Riley upped their target price on shares of Mallinckrodt from $20.00 to $37.00 and gave the company a “neutral” rating in a research note on Friday, August 24th. Wells Fargo & Co reissued a “hold” rating on shares of Mallinckrodt in a research note on Wednesday, August 22nd. Canaccord Genuity set a $34.00 target price on shares of Mallinckrodt and gave the company a “hold” rating in a research note on Sunday, August 19th. Morgan Stanley upped their price objective on shares of Mallinckrodt from $14.00 to $35.00 and gave the stock an “equal weight” rating in a research note on Friday, August 17th. Finally, SunTrust Banks upped their price objective on shares of Mallinckrodt to $32.00 and gave the stock a “positive” rating in a research note on Monday, August 13th. They noted that the move was a valuation call. Two research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and five have assigned a buy rating to the company’s stock. Mallinckrodt presently has a consensus rating of “Hold” and a consensus price target of $34.35.

NYSE MNK traded down $0.74 on Thursday, reaching $32.97. The company’s stock had a trading volume of 81,884 shares, compared to its average volume of 3,758,951. The stock has a market cap of $2.87 billion, a P/E ratio of 4.40, a PEG ratio of 0.57 and a beta of 1.57. Mallinckrodt has a 52 week low of $11.65 and a 52 week high of $39.05. The company has a quick ratio of 2.06, a current ratio of 2.27 and a debt-to-equity ratio of 0.98.

Mallinckrodt (NYSE:MNK) last posted its earnings results on Tuesday, August 7th. The company reported $1.78 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.48 by $0.30. The business had revenue of $631.70 million for the quarter, compared to analysts’ expectations of $621.15 million. Mallinckrodt had a net margin of 59.85% and a return on equity of 10.39%. research analysts anticipate that Mallinckrodt will post 6.7 earnings per share for the current year.

Institutional investors have recently modified their holdings of the business. Vident Investment Advisory LLC grew its stake in shares of Mallinckrodt by 1.7% during the second quarter. Vident Investment Advisory LLC now owns 166,782 shares of the company’s stock valued at $3,112,000 after purchasing an additional 2,807 shares during the last quarter. PNC Financial Services Group Inc. grew its stake in shares of Mallinckrodt by 22.7% during the first quarter. PNC Financial Services Group Inc. now owns 23,662 shares of the company’s stock valued at $343,000 after purchasing an additional 4,381 shares during the last quarter. Bronfman E.L. Rothschild L.P. grew its stake in shares of Mallinckrodt by 46.7% during the second quarter. Bronfman E.L. Rothschild L.P. now owns 15,238 shares of the company’s stock valued at $284,000 after purchasing an additional 4,853 shares during the last quarter. Guggenheim Capital LLC grew its stake in shares of Mallinckrodt by 17.1% during the first quarter. Guggenheim Capital LLC now owns 40,863 shares of the company’s stock valued at $592,000 after purchasing an additional 5,958 shares during the last quarter. Finally, Baker Avenue Asset Management LP grew its stake in shares of Mallinckrodt by 12.7% during the first quarter. Baker Avenue Asset Management LP now owns 59,463 shares of the company’s stock valued at $861,000 after purchasing an additional 6,720 shares during the last quarter.

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.

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