Perrigo (PRGO): Takeout Value Is $153 - Guggenheim
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) in Advanced Talks to Acquire B/E Aerospace (BEAV) - WSJ
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Guggenheim analyst, Louise Chen reiterated her Buy rating on shares of Perrigo Co. (NYSE: PRGO) after performing a Sum-of-the-Parts Analysis (SOTP) which suggests that PRGO shares are undervalued because clouds of uncertainty are masking the underlying growth potential of good assets (Consumer, Rx, Pipeline in '17+).
Management changes, several downward earnings revisions, generic drug pricing headwinds and a slowdown in Consumer launches this year have weighed on PRGO's stock through 1H16. PRGO shares are now down 37.8% YTD vs. +6.9% for the S&P500, and overall sentiment is negative on the stock. The analyst believes expectations have been reset and PRGO's risk/ reward is skewed to the upside.
As part of the analysis, Ms Chen, estimated PRGO's take-out value and derived $153 per share, 69% upside from where the stock is trading now. MYL was willing to pay ~$177 per share for PRGO's stock last year, she believes the fundamentals of the business have not deteriorated that much since then.
No change to the price target of $125.
Shares of Perrigo Co. closed at $91.83 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Perrigo (PRGO) Sees Intra-Day Gains on Report It Hired a Banker
- Jefferies Cuts Price Target on Boston Beer Co. (SAM) to $140 Following Weak 3Q
- Jefferies Cuts Price Target on Crown Holdings (CCK) Following 3Q
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesStandard & Poor's, Earnings, Louise Chen, Guggenheim
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!