UPDATE: Bank of America Downgrades Hospira to Neutral on Cash Flow Guidance
Bank of America downgraded Hospira (NYSE: HSP) from Buy to Neutral and reduced the price target from $44.00 to $38.00.
Bank of America commented, "HSP announced ‘13 guidance on its 4Q earnings call, and while management's revenue and EPS outlook is roughly consistent with ours, we were disappointed by cash flow guidance. In addition, HSP announced that (1) it is in the midst of deciding on its strategy for remediating its pumps business, which creates some new uncertainty (could have implications for costs and potentially for revenue), and (2) the long-awaited FDA re-inspection of the Rocky Mount facility has just begun, and management plans to summarize the results when complete (guidance assumes a “successful” outcome), potentially within a month or two."
Hospira closed at $34.03 on Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.