UPDATE: Jefferies Initiates Coverage on Mallinckrodt on Unique Market Position

In a report published Tuesday, Jefferies analyst Anthony Petrone initiated coverage on Mallinckrodt PLC (NYSE: MNK) with a Buy rating and $60.00 price target.

In the report, Jefferies noted, “Mallinckrodt is uniquely positioned in a consolidating Specialty Pharma industry having three attractive attributes: 1) Potential long duration assets in Xartemis XR and MNK-155, 2) Room for margin expansion post spin; and 3) Tax leverage from its Irish domicile. We see the combination as supporting accelerating earnings over the next three years with potential optionality from M&A and licensing. We rate shares Buy with a $60 PT.”

Mallinckrodt PLC closed on Monday at $50.60.