“We rate MNK 12-month PT of $42. We think Mallinckrodt suffers from a perception problem that ties it to headline risks in the pharma industry (scrutiny of high-priced drugs, government investigations, etc.). This masks the growth potential of Mallinckrodt’s Specialty Brands business and its consistent ability to meet or beat expectations, in our opinion. Valuation Summary We use a blend of DCF and multiples (EV/EBITDA) analysis to get to our 12-month price target of $42.”
According to TipRanks.com, Chen is a 4-star analyst with an average return of 8.6% and a 39.1% success rate. Chen covers the Healthcare sector, focusing on stocks such as Bausch Health Companies Inc, Aridis Pharmaceuticals Inc, and Amneal Pharmaceuticals Inc.
The word on The Street in general, suggests a Hold analyst consensus rating for Mallinckrodt with a $32.55 average price target, implying a 40.7% upside from current levels. In a report issued on November 23, Canaccord Genuity also reiterated a Buy rating on the stock with a $40 price target.
Based on Mallinckrodt’s latest earnings release for the quarter ending September 30, the company reported a quarterly revenue of $640 million and net profit of $114 million. In comparison, last year the company had a net profit of $64.2 million.
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Mallinckrodt Plc operates as a global specialty pharmaceuticals company. It develops, manufactures, markets and distributes both branded and generic specialty pharmaceutical products and medical imaging agents. It operates through the Specialty Brands and Specialty Generics segments. The Specialty Brands segment includes branded medicines.