Fargo analyst David Maris downgraded Mallinckrodt to Market Perform and cut his price target for the shares to $22 from $60. While the magnitude of the Q3 revenue miss does not warrant the 35% decline in shares yesterday, expectations are shifting from Acthar being a longer-term growth product to one facing longer-term declines, Maris tells investors in a post-earnings research note titled “Inexpensive Stock, Lost Conviction.” The analyst finds it prudent to step to the sidelines until improvement in the drug is seen. Mallinckrodt closed yesterday down $11.07 to $20.11.
