Morgan Stanley Reiterates Equal-Weight, Raises PT On Mallinckrodt Following Ikaria Acquisition

In a report published Monday, Morgan Stanley analyst David Risinger reiterated an Equal-Weight rating on

, and raised the price target from $106.00 to $127.00. In the report, Morgan Stanley noted, "We are Equal-weight MNK shares. Although we anticipate strong growth prospects, MNK's generic Concerta prospects are uncertain. Ikaria adds INOmax to MNK's portfolio, a durable drug-device-service combination that boosts the durability of MNK's specialty brands portfolio Potential FDA action on methylphenidate ER remains a swing factor in May (recall FDA reclassified MNK and Kudco's methylphenidate as BX-rated last November). M&A offers optionality for investors and can help further diversify earnings from Acthar." Mallinckrodt closed on Friday at $124.12.