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UPDATE: Goldman Sachs Downgrades Hospira to Sell on Delayed Earnings Stabilization

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Goldman Sachs reduced its rating on Hospira (NYSE: HSP) from Neutral to Sell with a $27 price target.

Goldman Sachs said, "Since the issuance of the Rocky Mount FDA warning letter in 2010 and subsequent FDA observations (explained below), the timelines for remediation have been continually elongated and estimates for associated costs have steadily increased. At this point, we think consensus numbers assume a normalization in earnings by 2014. We contend, however, that there is further investment on the horizon to shore up quality systems and support future growth. This, combined with a major patent expiration, drives our estimates 11% below consensus, on average, in 2013-2015E."

Hospira closed at $32.03 on Monday.

Latest Ratings for HSP

DateFirmActionFromTo
Jan 2015Deutsche BankMaintainsBuy
Dec 2014BarclaysMaintainsEqual-weight
Nov 2014JP MorganMaintainsNeutral

View More Analyst Ratings for HSP
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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