Analysts Offer Insights on Healthcare Companies: Eli Lilly & Co (NYSE: LLY) and Mallinckrodt (NYSE: MNK)

By Austin Angelo

There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Eli Lilly & Co (NYSE: LLY) and Mallinckrodt (NYSE: MNK) with bullish sentiments.

Eli Lilly & Co (NYSE: LLY)

In a report released today, Jeffrey Holford from Jefferies maintained a Buy rating on Eli Lilly & Co (NYSE: LLY), with a price target of $96. The company’s shares opened today at $84.31, close to its 52-week high of $86.72.

According to TipRanks.com, Holford is a 5-star analyst with an average return of 10.3% and a 78.7% success rate. Holford covers the Healthcare sector, focusing on stocks such as Parnell Pharmaceuticals, Johnson & Johnson, and Sanofi-Aventis Sa.

Currently, the analyst consensus on Eli Lilly & Co is Moderate Buy and the average price target is $93.86, representing an 11.3% upside.

In a report issued on July 12, Piper Jaffray also reiterated a Buy rating on the stock with a $102 price target.
Mallinckrodt (NYSE: MNK)

Canaccord Genuity analyst Dewey Steadman reiterated a Buy rating on Mallinckrodt (NYSE: MNK) today and set a price target of $87. The company’s shares opened today at $44.72, close to its 52-week high of $85.83.

Steadman observed:

“Date and time of first dissemination: July 17, 2017, 08:17 ET Date and time of production: July 17, 2017, 08:17 ET Target Price / Valuation Methodology: Mallinckrodt plc – MNK Our discounted cash flow (DCF) analysis leads us to a price target of $87/share for MNK shares. Our DCF considers our estimates through 2027, slowing growth through 2033 and a 10% terminal decline thereafter. In addition, we expect Mallinckrodt’s margin structure to remain somewhat consistent with our 2027 estimates. We estimate a weighted average cost of capital (WACC) of 11.4% which is in line with other companies in Mallinckrodt’s peer set due to the company’s manageable leverage and consistent cash generation potential.”

According to TipRanks.com, Steadman is a 1-star analyst with an average return of -3.3% and a 52.8% success rate. Steadman covers the Healthcare sector, focusing on stocks such as Infotek Pharmaceuticals, Pacira Pharmaceuticals, and Endo International.

Currently, the analyst consensus on Mallinckrodt is Strong Buy and the average price target is $71.17, representing a 59.1% upside.

In a report issued on July 13, Wells Fargo also maintained a Buy rating on the stock.

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