Boston, MA 05\/21\/2014 (wallstreetpr) \u2013 <\/b>Mallinckrodt PLC (NYSE:MNK)<\/b>‘s decision to raise price of its Ofirmev led research firms to revise their rating for the stock upward. The revision has indeed helped the company to record gains in its last trading session, where it inched up nearly 2%.<\/p>\n
UBS Raises Price Target<\/b><\/p>\n
The first rating upgrade comes from UBS, which has raised the price target for the company from $91 to $94 this Monday, while maintaining its ‘buy’ outlook for the generic drug company. Additionally, the firm also increased its EPS estimate for Mallinckrodt PLC (NYSE:MNK). The rating revision comes in the light of the price raise of its drug Ofirmev. UBS’s analysts Marc Goodman stated that they expect 50% out of 140% price rise to flow through. Also, the research firm noted that since the price hike is substantial, therefore, it would curtail the volume growth, as a result, the research firm decreased the growth rate assumptions that it expects to reflect in the forthcoming quarters. UBS raised the 2016 revenues in the range of $60-$70 million, which in turn leads to increase in pro-forma EPS to $6.15-$7.25. The research firm is conservative in its approach, and thus, see the numbers going up if there is robust growth.<\/p>\n
Piper Jaffray Is Overweight<\/b><\/p>\n
Alongwith UBS, an analyst at Piper Jaffray research firm has also made a comment about the company. The research firm notes that the company has implemented a price hike of 140% on May 15 which, according to them is substantially higher than expected. It further adds that the price hike should significantly reduce the risk to shares of the company, in case Fresenius (FMS0 stages its Ofirmex generic over the course of next two years. Piper believes that the risk and reward ratio on the shares of Mallinckrodt PLC (NYSE:MNK) are compelling and therefore, stick to its earlier rating of “overweight” on the stock.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/21\/2014 (wallstreetpr) \u2013 Mallinckrodt PLC (NYSE:MNK)‘s decision to raise price of its Ofirmev led research firms to revise their rating for the stock […]<\/p>\n","protected":false},"author":32,"featured_media":22995,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[264],"tags":[4549,4550],"stock_ticker":[],"class_list":["post-22983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-mallinckrodt-plc-nysemnk","tag-nysemnk","entry"],"acf":[],"yoast_head":"\n