Jefferies Lifts Numbers on Covidien (COV) on Mallinckrodt Spin
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Price: $106.71 --0%
Rating Summary:
9 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies boosted estimates and its price target on Buy-rated Covidien Ltd (NYSE: COV) from $66 to $75 on the Mallinckrodt (MNK) spin-off.
The long-held view that the pharma business is a drag on the overall Covidien business may have been correct in the past, but now that is changing the firm said. "Several developments within Mallinckrodt over the next 12-24 months have the potential to drive consistent high-single overall revenue growth through F15. Specifically, we see: 1) Specialty generics generating mid double-digit growth from the recent CONCERTA launch where we see up to $300mm+ in contribution into F14; 2) Continued growth in Brands supported by the R&D pipeline; and 3) Stabilization across Global Imaging."
"The net of our analysis is a preliminary valuation based of pre-spin COV at $75; inclusive of $68 for COV and $7 for MNK," the analyst said.
Jefferies raised Q1 EPS from $1.08 to $1.10, FY13 from $4.39 to $4.56 and FY14 from $4.80 to $5.01.
For an analyst ratings summary and ratings history on Covidien Ltd click here. For more ratings news on Covidien Ltd click here.
Shares of Covidien Ltd closed at $67.53 yesterday.
The long-held view that the pharma business is a drag on the overall Covidien business may have been correct in the past, but now that is changing the firm said. "Several developments within Mallinckrodt over the next 12-24 months have the potential to drive consistent high-single overall revenue growth through F15. Specifically, we see: 1) Specialty generics generating mid double-digit growth from the recent CONCERTA launch where we see up to $300mm+ in contribution into F14; 2) Continued growth in Brands supported by the R&D pipeline; and 3) Stabilization across Global Imaging."
"The net of our analysis is a preliminary valuation based of pre-spin COV at $75; inclusive of $68 for COV and $7 for MNK," the analyst said.
Jefferies raised Q1 EPS from $1.08 to $1.10, FY13 from $4.39 to $4.56 and FY14 from $4.80 to $5.01.
For an analyst ratings summary and ratings history on Covidien Ltd click here. For more ratings news on Covidien Ltd click here.
Shares of Covidien Ltd closed at $67.53 yesterday.
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