Zacks Investment Research downgraded shares of Mallinckrodt Plc (MNK) from OUTPERFORM to NEUTRAL on January 09, 2015, with a target price of $105.00.
Mallinckrodt reported adjusted earnings of $1.68 per share in the fourth quarter of fiscal 2014, beating the Zacks Consensus Estimate of $1.34. Net sales for the quarter were $789.3 million, up 44.8% from the year-ago quarter, beating the Zacks Consensus Estimate of $746 million. Results were boosted by the recent acquisitions of erstwhile Cadence Pharmaceuticals and Questcor along with lower costs due to ongoing restructuring activities. However, organic growth remains a concern. The FDA's reclassification of the company's ANDA for methylphenidate ER tablets will impact sales along with generic erosion of Exalgo. Hence, we downgrade our recommendation to Neutral.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Mallinckrodt Plc (MNK),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment