Jefferies Maintains Buy on Mallinckrodt plc (MNK) Post Questcor Bid

Jefferies analyst Anthony Petrone reiterated a Buy rating and $77 price target on Mallinckrodt plc (NYSE: MNK) following the company's Questcor Pharmacueticals, Inc. (NASDAQ: QCOR) acquisition.

Petrone said, "MNK made a splash with its $5.6bn bid for QCOR but despite significant accretion potential concerns persisted around the durability of the Acthar franchise. Although valid, the offer comes after extensive due diligence and meanwhile pro-forma valuation is cheap at a 9% FCF yield. Our accretion math calls for $3 in EPS by F15 which modestly justifies a $75-$85 range keeping us at Buy."

For an analyst ratings summary and ratings history on Mallinckrodt plc click here. For more ratings news on Mallinckrodt plc click here.

Shares of Mallinckrodt plc closed at $60.95 yesterday.

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