Perrigo (PRGO): Upside Just Isn't Compelling - RBC
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
RBC Capital analyst, Randall Stanicky, reiterated his Sector Perform rating on shares of Perrigo Co. (NYSE: PRGO) determining that even though the risk/reward looks better, the upside still isn't compelling.
The market's focus on PRGO is set to increase ahead of 1) 3Q with investor trepidation again building, 2) the strategic review outcome likely before year end and 3) activist response to that review.
The analyst stated: "There is decent downside protection on two fronts (i) consensus numbers are reasonable following the most recent guidance re-set and (ii) Starboard's involvement should keep a floor in the stock. But that is countered by an expensive standalone valuation relative to peers (11.7x 2017E EV/ EBITDA) with close to half the profit from Tysabri/Rx and (ii) break-up math that is not compelling".
No change to the price target of $92.
Shares of Perrigo Co. closed at $90.31 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Kroger (KR) to $30 Following 3Q and Guidance
- Shopify (SHOP): CFO Meetings Indicate Strong Growth Ahead - Wedbush
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesRBC Capital
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!