Mallinckrodt (NYSE:MNK) received a $42.00 price target from analysts at Cantor Fitzgerald in a note issued to investors on Tuesday. The brokerage currently has a “buy” rating on the stock. Cantor Fitzgerald’s price objective suggests a potential upside of 125.08% from the company’s previous close.
The analysts wrote, “Positives from the quarter that support our thesis: 1) During the quarter, MNK’s cash flow from operations was ~$279MM, with free cash flow of ~ $244MM. 2) MNK repurchased 9.4MM shares in 4Q17, or ~10% of outstanding shares in the last quarter. 3) Net debt was ~$5.5B, and MNK drew on its revolver in preparation for the SCMP (Not Covered) transaction. Net debt leverage was 4.0x as of the end of the year. 4) Acthar sales in the quarter were $295MM (FactSet consensus was $288MM), a 9.3% YoY decrease, affected by the previously disclosed patient withdrawal issues. MNK has taken a number of steps to address the issue, including engagement with payers, prescribers and patients. MNK remains focused on returning Acthar to growth. 5) MNK seeks to reduce its annual SG&A spending by $100MM no later than the early-2020s, while continuing to increase R&D spending.””
Other equities research analysts have also issued reports about the stock. Barclays lowered shares of Mallinckrodt from an “equal weight” rating to an “underweight” rating and decreased their price objective for the stock from $23.00 to $20.00 in a research report on Friday, February 2nd. Zacks Investment Research upgraded shares of Mallinckrodt from a “sell” rating to a “hold” rating in a research report on Tuesday, October 31st. Canaccord Genuity set a $24.00 price objective on shares of Mallinckrodt and gave the stock a “hold” rating in a research report on Tuesday, November 14th. Wells Fargo & Co reiterated a “hold” rating on shares of Mallinckrodt in a research report on Monday, January 1st. Finally, ValuEngine lowered shares of Mallinckrodt from a “buy” rating to a “hold” rating in a research report on Friday, February 2nd. Two analysts have rated the stock with a sell rating, twelve have assigned a hold rating and seven have issued a buy rating to the stock. Mallinckrodt currently has a consensus rating of “Hold” and a consensus price target of $42.64.
Mallinckrodt (NYSE:MNK) last issued its earnings results on Tuesday, February 27th. The company reported $2.01 EPS for the quarter, topping the consensus estimate of $1.72 by $0.29. The company had revenue of $792.30 million for the quarter, compared to analyst estimates of $769.91 million. Mallinckrodt had a net margin of 11.43% and a return on equity of 14.79%. The business’s revenue was down 4.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.91 EPS. equities research analysts forecast that Mallinckrodt will post 7.2 earnings per share for the current year.
A number of hedge funds have recently made changes to their positions in the stock. Advantus Capital Management Inc raised its stake in Mallinckrodt by 23.7% in the 3rd quarter. Advantus Capital Management Inc now owns 12,286 shares of the company’s stock valued at $459,000 after purchasing an additional 2,352 shares during the last quarter. Oppenheimer & Co. Inc. raised its stake in Mallinckrodt by 15.6% in the 3rd quarter. Oppenheimer & Co. Inc. now owns 20,731 shares of the company’s stock valued at $775,000 after purchasing an additional 2,792 shares during the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund raised its stake in Mallinckrodt by 11.9% in the 3rd quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 29,117 shares of the company’s stock valued at $1,088,000 after purchasing an additional 3,107 shares during the last quarter. Meeder Asset Management Inc. raised its stake in Mallinckrodt by 20.4% in the 4th quarter. Meeder Asset Management Inc. now owns 19,285 shares of the company’s stock valued at $435,000 after purchasing an additional 3,273 shares during the last quarter. Finally, Pinnacle Associates Ltd. raised its stake in Mallinckrodt by 69.8% in the 3rd quarter. Pinnacle Associates Ltd. now owns 8,025 shares of the company’s stock valued at $300,000 after purchasing an additional 3,300 shares during the last quarter. 97.38% of the stock is owned by hedge funds and other institutional investors.
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Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs.
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