UPDATE: JP Morgan Downgrades Hospira to Neutral on Slow Recovery Outlook

JP Morgan reduced its rating on Hospira

from Overweight to Neutral and reduced its price target from $40 to $38. JP Morgan noted, "While we continue to view Hospira's core generic injectable market as an attractive one and we remain optimistic about the company's longer-term business, we increasingly anticipate a gradual recovery in earnings over the next several years. Along these lines, following a series of 2013/2014 estimate reductions and a recovery for HSP shares in 2012 from depressed 2011 levels, we see a more balanced risk/reward for HSP shares at current levels." Hospira closed at $34.59 on Wednesday.