Barclays Maintains an 'Equalweight' on Hospira (HSP); What Could A Consent Decree Mean?
Tweet
Share
E-mailGet Alerts HSP Hot Sheet
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
Join SI Premium – FREE
Barclays maintains an 'Equalweight' on Hospira (NYSE: HSP) price target of $30.00.
Barclays analyst says, "We highlight that there continues to be noise in the market around HSP's FDA issues, including the possibility of a consent decree. While we agree that a consent decree is possible, we think there is a wide range of outcomes that could result from that type of action with the government, and we believe that the ultimate penalties and actions are decided on a case-by-case basis."
"Given the current stock price, we think shares of HSP are factoring in some probability of moderate penalties from a consent decree or other action. While we continue to believe the most likely outcome is that HSP will experience service disruptions for several quarters as it works through the Rocky Mount remediation, given our limited per-view, and precedence, we cannot rule out a more dramatic action such as a partial shut-down of the plant or disgorgement of profits. In the near term, we expect lack of visibility around remediation timing and 2012-2013 earnings power to pressure shares."
For an analyst ratings summary and ratings history on Hospira click here. For more ratings news on Hospira click here.
Shares of Hospira closed at $27.86 yesterday.
Barclays analyst says, "We highlight that there continues to be noise in the market around HSP's FDA issues, including the possibility of a consent decree. While we agree that a consent decree is possible, we think there is a wide range of outcomes that could result from that type of action with the government, and we believe that the ultimate penalties and actions are decided on a case-by-case basis."
"Given the current stock price, we think shares of HSP are factoring in some probability of moderate penalties from a consent decree or other action. While we continue to believe the most likely outcome is that HSP will experience service disruptions for several quarters as it works through the Rocky Mount remediation, given our limited per-view, and precedence, we cannot rule out a more dramatic action such as a partial shut-down of the plant or disgorgement of profits. In the near term, we expect lack of visibility around remediation timing and 2012-2013 earnings power to pressure shares."
For an analyst ratings summary and ratings history on Hospira click here. For more ratings news on Hospira click here.
Shares of Hospira closed at $27.86 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Movano (MOVE) Misses Q2 EPS by 195c
- Diana Shipping drops bid for Genco after price demands spike to $36.91
Create E-mail Alert Related Categories
Analyst Comments, FDARelated Entities
Barclays, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
