BMO Capital analyst Gary Nachman cut his price target for Mallinckrodt shares to $38 from $65 following this morning’s Q3 earnings report. The “surprising and disappointing news” in the quarter pertained to Acthar, which missed expectations amid a spike in number of prescriptions written going unfilled, Nachman tells investors in a post-earnings research note. The analyst sees this issue, despite management’s confidence, persisting for several quarters. Nachman, however, keeps an Outperform rating on Mallinckrodt. He believes the selloff in shares today is “exaggerated.” The stock in afternoon trading is down 34%, or $10.50, to $20.68.