Story updated at 9:55 a.m. to reflect market activity.
Mallinckrodt gained 1.9% to $80.39 in morning trading.
The firm also raised its EPS estimates for the company. UBS analyst Marc Goodman cited the price increase of Ofirmex as a reason for the price target increase."We conservatively assume 50% of the 140% price increase would flow through, but the flow through could be higher," Goodman wrote. "We also assume the substantial price increase would negatively impact volume growth, so we slowed our growth rate assumptions with a substantially greater impact initially, which tapers off in later quarters. The net effect is an increase in FY2015-2016 revenues in the $60-70M per year range, which increases our pro-forma EPS to $6.15 and $7.25 (from $5.85 and $7.00), respectively. If our assumptions prove conservative, we could see upside to our numbers." Must read: Warren Buffett's 10 Favorite Growth Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts