Stifel analyst Annabel Samimy says Mallinckrodt (MNK) reined in its largest overhangs by announcing an agreement in principle on terms of a global settlement that would address all opioid-related claims for $1.6B in structured payments as well as a debt refinancing that would address its April 2020 debt obligation.

The news addresses two out of three of the company's most pressing cash-calls, Samimy tells investors in a research note. Though it puts the Specialty Generics unit into Chapter 11 temporarily to manage liabilities, this is the beginning of Mallinckrodt "retaking control of its broader business and clearing a path for shares to be revalued," contends the analyst.

Samimy believes the tentative plans and reduced uncertainty "go a long way toward refocusing on the value" of Mallinckrodt's portfolio. 

The analyst keeps a Hold rating on the shares with an $8 price target. Mallinckrodt closed Tuesday up 16% to $4.75.