Perrigo (PRGO): Upside Just Isn't Compelling - RBC
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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.
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