Canaccord Genuity analyst Susan Anderson maintained a Buy rating on Perrigo Company (PRGO – Research Report) yesterday and set a price target of $42.00.
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Susan Anderson’s rating is based on a combination of factors that highlight Perrigo Company’s potential for growth and recovery. Despite a slight decline in overall sales, the company has shown strong performance in its core operations, particularly in the infant nutrition sector, which has seen significant improvements in production and market presence. The company’s gross margins have improved substantially, driven by a favorable product mix and efficiency programs, leading to better-than-expected adjusted earnings per share.
Furthermore, management’s updated expectations for fiscal year 2025 indicate a positive outlook, with anticipated sales growth and stable earnings projections. The international segment of Perrigo’s business is performing well, with notable growth in both sales and profits. Additionally, the company is poised to benefit from consumer trends favoring lower-cost over-the-counter options, which could enhance its market position. These factors contribute to the belief that Perrigo is undervalued and presents a significant upside potential, justifying the Buy rating and a price target of $42.
PRGO’s price has also changed slightly for the past six months – from $26.930 to $26.410, which is a -1.93% drop .