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Needham & Company maintains a 'Hold' on Perrigo Co. (PRGO); Q2 Outpaces Despite Some Segmental Head Winds

February 8, 2012 8:27 AM EST
PRGO Hot Sheet
Rating Summary:
    8 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Needham & Company maintains a 'Hold' on Perrigo Co. (NASDAQ: PRGO).

Analyst, Elliot Wilbur, says, "Despite hurdles of a weak cough/cold segment and continued underperformance in nutritionals, PRGO again delivered financials that surpassed expectations aided by another strong quarter from RX generics. While a slowly recovering Johnson & Johnson (NYSE: JNJ) and continued short-term top-line and margin performance challenges in nutritionals remove a couple of key outperformance levers that management has previously banked on, Rx generic trends (both volume and pricing) and new product launch calendar on the consumer side remain strong, suggesting continued favorable performance vs. consensus estimates which remain at the midpoint of guidance despite strong historical beat & raise track record. While PRGO delivered another solid numbers performance, we remain neutral on shares given our view that upside remains predicated on strong near-term generic segment dynamics and more favorable reward/risk opportunities can be found in less valuation-challenged peers."

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 $95.26 yesterday, with a 52 week range of $70.94-$104.70.


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