Perrigo (PRGO): Breakup Valuation Would Be $117 - RBC
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RBC Capital analyst, Randall Stanicky, reiterated his Sector Perform rating on shares of Perrigo Co. (NYSE: PRGO) after Reuters reported that PRGO is exploring a Tysabri royalties sale. After running a break-up analysis, he sees ~$117 per share value with a sale premium against modest dis-synergies.
Focus has increased on whether or not PRGO could be pushed into a break-up situation with a strategic review ongoing. Starboard has been pushing for the sale of non-core assets including the Tysabri royalties and Generics business and now Reuters is reporting that PRGO is exploring a sale of its Tysabri royalties. From here, the focus should be on management's messaging around its willingness to sell the Generics business which will make a full break-up seem more likely.
No change to the price target of $92.
Shares of Perrigo Co. closed at $93.30 yesterday.
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