Auriga Maintains a 'Buy' on Perrigo Co. (PRGO); Accumulate Shares on Weakness
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Price: $31.27 +0.13%
Rating Summary:
16 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
16 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Auriga maintains a 'Buy' on Perrigo Co. (NASDAQ: PRGO) price target of $125.00.
Analyst, Louis e Chen, said, "PRGO's stock is down ~6% post a F3Q12 earnings beat because sales came in below expectations. We view this as a buying opportunity, as the street missed what we think was a great quarter. Despite the topline miss, PRGO was still able to deliver an EPS beat of $0.20 and this was driven by the company's strong operating performance. PRGO reported record gross and operating margins of 37.6% and 22.1%, respectively. PRGO's earnings power is still underappreciated, and upwards earnings revisions will continue to drive stock price appreciation, in our view. New product launches have started to accelerate and momentum should continue into F4Q12+ (with launches of Delsym, Duac, Allegra D-12, Prevacid, among others). Moreover, the allergy season appears to be early and strong. This should help sales of store brand Allegra, Claritin and Zyrtec. Over time, PRGO's allergy business will represent a meaningfully larger percentage of overall CHC sales (now dominated by cough/cold). Finally, we expect the Novartis (NYSE: NVS) and J&J (NYSE: JNJ) opportunities, adjacent category product acquisitions and new customer contracts (for Nutritionals and possibly infant formula as well) should also help bolster PRGO's earnings potential."
"F2013 growth will be on top of increased EPS guidance of $4.90 to $5.00."
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 $100.00 yesterday.
Analyst, Louis e Chen, said, "PRGO's stock is down ~6% post a F3Q12 earnings beat because sales came in below expectations. We view this as a buying opportunity, as the street missed what we think was a great quarter. Despite the topline miss, PRGO was still able to deliver an EPS beat of $0.20 and this was driven by the company's strong operating performance. PRGO reported record gross and operating margins of 37.6% and 22.1%, respectively. PRGO's earnings power is still underappreciated, and upwards earnings revisions will continue to drive stock price appreciation, in our view. New product launches have started to accelerate and momentum should continue into F4Q12+ (with launches of Delsym, Duac, Allegra D-12, Prevacid, among others). Moreover, the allergy season appears to be early and strong. This should help sales of store brand Allegra, Claritin and Zyrtec. Over time, PRGO's allergy business will represent a meaningfully larger percentage of overall CHC sales (now dominated by cough/cold). Finally, we expect the Novartis (NYSE: NVS) and J&J (NYSE: JNJ) opportunities, adjacent category product acquisitions and new customer contracts (for Nutritionals and possibly infant formula as well) should also help bolster PRGO's earnings potential."
"F2013 growth will be on top of increased EPS guidance of $4.90 to $5.00."
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 $100.00 yesterday.
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