Piper Jaffray Stays Bullish on Mallinckrodt (MNK), Lifts PT to $112

August 24, 2016 6:37 AM EDT
Get Alerts MNK Hot Sheet
Price: $48.12 +3.42%

Rating Summary:
    17 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 36 | New: 34
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Piper Jaffray analyst David Amsellem reiterated an Overweight rating and boosted its price target on Mallinckrodt plc (NYSE: MNK) to $112.00 (from $103.00), saying payer contracting activities on Acthar is making process of getting a prescription filled more predictable and more likely.

Amsellem commented, "Much has been made of Mallinckrodt’s payer contracting activities related to Acthar, and not without justification, since in our view, these efforts give the product an imprimatur of legitimacy among the broader investor community. Beyond those optics, it is clear from our conversations with MNK that though access to Acthar is still tightly restricted, the contracting activity generally is conferring greater standardization of Acthar coverage among the myriad payers, generally making the process of getting an Acthar prescription (Rx) filled more predictable and in our view making it more likely that physicians/practices will be more consistent writers of Acthar Rx’s. This paradigm, along with a steady flow of additional clinical outcomes data, is why we continue to believe visibility on relatively strong volume growth over the long-term is high. We reiterate our Overweight rating and are raising our PT to $112."

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 $83.06 yesterday.

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