Canaccord Genuity Maintains a 'Hold' on Perrigo Co. (PRGO); Guidance Disappoints; Can't Find Near-Term Catalyst

August 17, 2012 10:14 AM EDT Send to a Friend
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Price: $150.19 +0.31%

Rating Summary:
    16 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 25 | Down: 20 | New: 23
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Canaccord Genuity maintains a 'Hold' on Perrigo Co. (NASDAQ: PRGO) price target of $125.00.

Analyst, Randall Stanicky, said, "PRGO reported a generally low-quality quarter with first time fiscal 2013 guidance that found the consensus range but fell short given valuation and expectations which were our two primary concerns that led to our early July downgrade. With that said, we think there is room for upward revisions to guidance throughout the year on what feels like conservative forecasts around new launches and operating margin expansion – both not likely obvious near term. While we continue to like the longer-term Rx to OTC platform and see limited downside risk given the ~7% sell-off today, we think upside is linked to EPS revisions likely to come later in the year with few near-term catalysts to point to absent a transaction – which is still a potential upside driver given PRGO’s past but hard to peg...or fiscal 2013-2015E EPS, we are now at $5.46, $6.06 and $6.78."

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 $108.93 yesterday.




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