UPDATE: Paradigm Capital Downgrades Nordion to Hold on Diminished Outlook
Paradigm Capital downgraded Nordion (NYSE: NDZ) from Buy to Hold and lowered the price target from $9.50 to $8.00.
Paradigm Capital commented, "While the Q4 results were better than expected, we are reducing our price target and downgrading our recommendation to Hold (from Buy), as we believe the company's guidance indicates the business is likely to have a difficult few years ahead. Contributing to this updated view are: 1) escalating internal investigation costs and an increased SG&A requirement to guard against similar issues in the future; 2i) increasing pension costs; 3) lower profitability from Therasphere."
Nordion closed at $6.83 on Monday.
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