Market Overview

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

Related HSP
Hospira Granted Temporary Restraining Order Against FDA, Shares Pop Higher
BioScrip Posts Wider-than-Expected Q2 Loss on Poor Margins

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
Jul 2014BarclaysMaintainsEqual-weight
Jul 2014CitigroupMaintainsSell
Jul 2014JP MorganMaintainsNeutral

View More Analyst Ratings for HSP
View the Latest Analyst Ratings

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

 

Related Articles (HSP)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters