Collins Stewart Slashes Price Target on Hospira (HSP) by 44%, Encourages Long-Term Investors to Buy
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Price: $89.95 --0%
Rating Summary:
3 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Collins Stewart is reaffirming its Buy rating on shares of Hospira (NYSE: HSP), but is slashing its price target form from $62 to $35.
The firm notes its lower price target reflects the company's pre-announced guidance and current market conditions. Management reported that the reduced earnings figures are a result of the quality actions taken in response to its Rocky Mount FDA Warning Letter.
Collin Stewart also encourages long-term investors to take advantage of the sell off and increase their position in the company.
An analyst at Collins Stewart comments, "At current levels we think that downside risk is limited, and the market is assuming our “Bear Case” scenario for HSP. Mike Ball is doing all the right things to create a competitive growth platform for HSP, and we believe that patience will be rewarded."
To go inline with Hospira's new outlook and the current FDA standings on its pipeline, the firm is cutting its 2011 EPS estimate from $3.90 to $2.95, at the low end of managements new guidance of $2.95-$3.05. HSP's original EPS guidance was $3.90-$4.00.
HSP is scheduled to release its third quarter results on October 26.
For more ratings news on Hospira click here and for the rating history of Hospira click here.
Shares of Hospira closed at $29.51 yesterday.
The firm notes its lower price target reflects the company's pre-announced guidance and current market conditions. Management reported that the reduced earnings figures are a result of the quality actions taken in response to its Rocky Mount FDA Warning Letter.
Collin Stewart also encourages long-term investors to take advantage of the sell off and increase their position in the company.
An analyst at Collins Stewart comments, "At current levels we think that downside risk is limited, and the market is assuming our “Bear Case” scenario for HSP. Mike Ball is doing all the right things to create a competitive growth platform for HSP, and we believe that patience will be rewarded."
To go inline with Hospira's new outlook and the current FDA standings on its pipeline, the firm is cutting its 2011 EPS estimate from $3.90 to $2.95, at the low end of managements new guidance of $2.95-$3.05. HSP's original EPS guidance was $3.90-$4.00.
HSP is scheduled to release its third quarter results on October 26.
For more ratings news on Hospira click here and for the rating history of Hospira click here.
Shares of Hospira closed at $29.51 yesterday.
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