Guggenheim analyst Louise Chen reiterated a Buy rating and $230 price target on Perrigo Co. (NYSE: PRGO) ahead of Friday, saying the stock could offer more upside than the Mylan (NYSE: MYL) deal.

Chen commented, "We don't advise trading PRGO stock in for MYL (NEUTRAL, $45.44) shares. PRGO's recently announced enhancements to increase earnings potential in '15+ give us even more confidence that PRGO shareholders are better off owning PRGO's stock versus trading their shares in for MYL's stock. We have heard the argument that tendering shares could offer investors a small return in '15, to offset other spec pharma investments that may be down YTD. We believe an important part of this equation that should be considered is the selling pressure on MYL shares, by PRGO shareholders, who tender but don't want to hold MYL shares after taking delivery (selling pressure could start Friday). It is our opinion that this selling pressure has the possibility to eliminate a large portion, if not all, of the gain holders could receive by tendering. Further selling pressure could come from ABT (NC, $45.76) and TEVA (NEUTRAL, $59.94) disposing of their holding, which together accounts for ~19% of MYL shares. ABT and TEVA have both publicly disclosed their intention not to be long-term MYL holders."

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 $163.03 yesterday.