Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

The Street Is Much Too Optimistic About Hospira

It's probably true that a company would be hard-pressed to do worse than Hospira (NYSE:HSP) has managed in recent years, but it doesn't automatically follow that conditions will get quite a bit better. Hospira certainly could be a better company in a few years' time, but "could" is a dangerous word when it comes to investing. So although I am bullish on Hospira's opportunities in biosimilars, I struggle to come up with a scenario where this stock is priced to outperform.

Q4 Not Really The Problem

With that very bearish intro in hand, Hospira's fourth quarter results actually weren't all that bad. Revenue rose 8% and registered a slight beat relative to analyst expectations. Hospira's specialty injectables business...

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