Goldman Sachs Maintains Neutral on Hospira

Goldman Sachs is out with its report today on Hospira HSP, maintaining Neutral. In a note to clients, Goldman Sachs writes, "Shifting to the long term, we think the company needs to bridge the gap between the slowing sales from Paragraph IV challenge drugs (2012) and the eventual impact from Biosimilars (2014+). International growth could be that bridge, but there is little clarity on this opportunity right now. Continuing to improve margins through efficiencies and boosting ROIC through more efficient use of capital will also be key factors in EPS growth and P/E multiple expansion, in our view. We see room for potential upside on these factors but await greater visibility. At current levels, we see the risk/reward as fairly balanced and maintain our Neutral rating." Goldman Sachs maintains a $60 PT on HSP. Shares of HSP closed Monday at $53.07, down 1.15% from Friday's close.