BMO Capital Thinks Mallinckrodt’s Stock is Going to Recover

By Ryan Adsit

In a report issued on July 26, Gary Nachman from BMO Capital reiterated a Buy rating on Mallinckrodt (NYSE: MNK), with a price target of $69. The company’s shares closed yesterday at $45.90, close to its 52-week high of $85.83.

According to, Nachman is a 5-star analyst with an average return of 15.3% and a 65.8% success rate. Nachman covers the Healthcare sector, focusing on stocks such as Amphastar Pharmaceuticals, Sucampo Pharmaceuticals, and Pacira Pharmaceuticals.

Currently, the analyst consensus on Mallinckrodt is Strong Buy and the average price target is $70.92, representing a 54.5% upside.

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

Mallinckrodt’s market cap is currently $4.56B and has a P/E ratio of 10.88. The company has a book value ratio of 0.8921.

Based on the recent corporate insider activity of 91 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MNK in relation to earlier this year.

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Mallinckrodt Plc operates as a global specialty pharmaceuticals company. It develops, manufactures, markets and distributes both branded and generic specialty pharmaceutical products and medical imaging agents. It operates through the following segments: Specialty Brands, Specialty Generics, and Nuclear Imaging.