Goldman Sachs Downgrades Hospira (HSP) to Neutral

Goldman Sachs downgraded Hospira (NYSE: HSP) from Buy to Neutral and cut its price target from $63 to $60, suggesting 6% upside.

The firm said their thesis faces operational challenges. "Underperformance has been driven by quality control challenges and downward revisions in consensus earnings forecasts," the firm notes.

To become more constructive, Goldman will look for: (1) better visibility into stated long-term sales and earnings targets; both our estimates and consensus are below managements targets, (2) more defined capital allocation strategy that outlines annual commitments and (3) greater transparency into reported segment numbers and increased quarter-to-quarter visibility.

Goldman lowered 2011-2014 forecasts to $3.99/$4.48/$5.02/$5.52 from $3.99/$4.59/$5.13/$5.66

For more ratings news on Hospira click here and for the rating history of Hospira click here.

Shares of Hospira closed at $56.94 yesterday.

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