Deutsche Bank Upgrades Perrigo Co. (PRGO) to Buy
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Rating Summary:
16 Buy, 10 Hold, 1 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Deutsche Bank upgraded Perrigo Co. (NYSE: PRGO) from Hold to Buy with a price target of $115. Analyst Gregg Gilbert sees compelling risk/reward.
"With the stock off over 20% since the Q1 miss and guide-down and 50% from its 2015 high (during the MYL process), negative investor sentiment, and cautious sell-side views, we believe the risk/reward has become compelling enough to justify a Buy rating," said Gilbert.
"We make this change recognizing that PRGO could potentially miss 2Q estimates, lower its already-lowered 2016 outlook, and offer a long-term growth outlook that is significantly more modest than that offered in the past. Operational challenges for the recently-acquired European Consumer business (Omega) will likely take some time to address and the generic segment faces headwinds, but once expectations are fully reset we believe investors will focus on PRGO as a company with decent growth prospects and durable cash flows, particularly for its consumer-facing businesses. We also believe that management is more open-minded than ever to consider strategic options that could accelerate value creation, although our thesis and model do not rely upon this theme," added the analyst.
For an analyst ratings summary and ratings history on Perrigo Co. click here. For more ratings news on Perrigo Co. click here.
Shares of Perrigo Co. closed at $91.52 yesterday.
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