Needham & Company Raises Estimates on Perrigo Co. (PRGO); Another Winning Quarter; Demanding Valuation
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Price: $118.92 +0.90%
Rating Summary:
11 Buy, 4 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
11 Buy, 4 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade PRGO Now!
Needham & Company maintains a 'Hold' on Perrigo Co. (NASDAQ: PRGO).
Analyst, Elliot Wilbur, said, "While PRGO managed to deliver another bottom-line win in 4QF12, the margin of victory continues to diminish and impact segments, mainly consumer and nutritionals, are not delivering the growth leverage embedded in valuation in our view. On the surface, initial F2013 guidance is “good enough” relative to current consensus though given ever increasing dependence on Rx generics for bottom-line growth, risk profile around potential new entrants in key generics or slippage in timing of FDA approvals is certainly on the rise. Despite today’s weakness, shares have been incredibly resilient off of past quarter’s less than perfect numbers delivery and a quick bounce back certainly wouldn’t be surprising. While we remain Neutral on shares, we are increasingly wary of heightened valuation risk in light of what appears to be growth strains in key segments and ever more dependence on the riskier and more volatile generics business." (FY13 EPS estimate raised from $5.32 to $5.38 and FY14 from $5.99 to $6.08)
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, with a 52 week range of $83.83-$119.29.
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Analyst, Elliot Wilbur, said, "While PRGO managed to deliver another bottom-line win in 4QF12, the margin of victory continues to diminish and impact segments, mainly consumer and nutritionals, are not delivering the growth leverage embedded in valuation in our view. On the surface, initial F2013 guidance is “good enough” relative to current consensus though given ever increasing dependence on Rx generics for bottom-line growth, risk profile around potential new entrants in key generics or slippage in timing of FDA approvals is certainly on the rise. Despite today’s weakness, shares have been incredibly resilient off of past quarter’s less than perfect numbers delivery and a quick bounce back certainly wouldn’t be surprising. While we remain Neutral on shares, we are increasingly wary of heightened valuation risk in light of what appears to be growth strains in key segments and ever more dependence on the riskier and more volatile generics business." (FY13 EPS estimate raised from $5.32 to $5.38 and FY14 from $5.99 to $6.08)
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, with a 52 week range of $83.83-$119.29.
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