Zacks Investment Research lowered shares of Mallinckrodt (NYSE:MNK) from a buy rating to a hold rating in a report issued on Thursday morning.

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 commented on MNK. Leerink Swann raised their price target on Mallinckrodt from $12.00 to $27.00 and gave the stock a market perform rating in a report on Wednesday, August 8th. Morgan Stanley cut their price target on Mallinckrodt from $27.00 to $14.00 and set an equal weight rating for the company in a report on Wednesday, May 9th. SunTrust Banks raised their price target on Mallinckrodt to $32.00 and gave the stock a positive rating in a report on Monday, August 13th. They noted that the move was a valuation call. B. Riley raised their price target on Mallinckrodt from $20.00 to $37.00 and gave the stock a neutral rating in a report on Friday, August 24th. Finally, Canaccord Genuity raised their price target on Mallinckrodt from $14.00 to $22.00 and gave the stock a hold rating in a report on Thursday, July 19th. Two investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and five have issued a buy rating to the company’s stock. Mallinckrodt currently has an average rating of Hold and an average target price of $34.35.

Shares of Mallinckrodt stock traded up $0.29 during trading hours on Thursday, reaching $33.25. The company had a trading volume of 50,254 shares, compared to its average volume of 2,798,489. Mallinckrodt has a one year low of $11.65 and a one year high of $39.05. The company has a debt-to-equity ratio of 0.98, a current ratio of 2.27 and a quick ratio of 2.06. The firm has a market capitalization of $2.80 billion, a P/E ratio of 4.54, a PEG ratio of 0.56 and a beta of 1.57.

Mallinckrodt (NYSE:MNK) last posted its quarterly earnings results on Tuesday, August 7th. The company reported $1.78 EPS for the quarter, topping the Zacks’ consensus estimate of $1.48 by $0.30. Mallinckrodt had a return on equity of 10.39% and a net margin of 59.85%. The firm had revenue of $631.70 million during the quarter, compared to analyst estimates of $621.15 million. sell-side analysts expect that Mallinckrodt will post 6.7 earnings per share for the current fiscal year.

Hedge funds have recently modified their holdings of the stock. Scopia Capital Management LP raised its position in Mallinckrodt by 111.2% during the first quarter. Scopia Capital Management LP now owns 8,626,365 shares of the company’s stock valued at $124,910,000 after purchasing an additional 4,541,078 shares in the last quarter. CIBC World Markets Inc. raised its position in Mallinckrodt by 94.2% during the first quarter. CIBC World Markets Inc. now owns 19,854 shares of the company’s stock valued at $287,000 after purchasing an additional 9,631 shares in the last quarter. Price Capital Management Inc. purchased a new stake in Mallinckrodt during the second quarter valued at about $714,000. Balasa Dinverno & Foltz LLC purchased a new stake in Mallinckrodt during the second quarter valued at about $200,000. Finally, Bronfman E.L. Rothschild L.P. raised its position in 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 in 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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