UBS analyst, Marc Goodman, reiterated his Buy rating on shares of Perrigo Co. (NYSE: PRGO) and provided insight into the guidance reduction.

The analyst noted "Mgt clipped $200M off the top line in Rx with 50% from pricing pressure and 50% from volume loss (of which ~1/3 each due to competition, new product timing, and a cushion for what if something else goes wrong). Mgt certainly sounded much more like it really hit the numbers this time versus last quarter. The good news is that during the first 5 weeks in the quarter mgt hasn’t seen the same level of price deterioration, so there is always the chance there could be upside. Mgt also clipped $100M off the top line for Omega and pointed to increased advertising investments in 2H16, specifically 3Q16."

He also notes that new products should drive >$300M of sales in 2016 (~70% from consumer, mainly CHC and 30% from Rx). But that said, he cut his price target to $110.00 (from $120.00).

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 $86.00 yesterday.