Mallinckrodt (MNK) Stock Price Target Lowered at Deutsche Bank - TheStreet

NEW YORK (TheStreet) -- Mallinckrodt's (MNK) - Get Report stock price target was trimmed to $82 from $84 at Deutsche Bank on Wednesday.

The firm maintained a "buy" rating on shares of the Dublin-based pharmaceutical company.

Deutsche Bank previously updated its Mallinckrodt model based on preliminary estimates for the company's planned divestiture of its nuclear imaging business to IBA Molecular. The deal is expected to close in the first half of 2017.

"Management has since provided additional color on the potential financial impact of the divestiture that implies somewhat greater dilution relative to our preliminary estimates, which we have now factored into our model," the firm wrote in a note earlier today.

Deutsche Bank also took a more conservative view on generic sales and gross margin to reflect the possibility of greater pressure from the increasing competition that the company expects over the next several quarters.

"We are sticking with our buy rating based on the strength of the base business and potential for value-added deals, which are not reflected in our model," the firm noted.

Shares of Mallinckrodt closed higher on Wednesday.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, attractive valuation levels and good cash flow from operations.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: MNK

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