Piper starts Perrigo at Overweight on high private-label mix

Piper Sandler initiated coverage of Perrigo with an Overweight rating and $37 price target. Management’s increased focus on “consumerizing” the business following the prescription divestiture, the company’s high private-label mix, and several longer term top and bottom line tailwinds support a “far stronger valuation” than the stock’s current discount versus peers, the analyst tells investors in a research note. The firm says consumers are showing signs of more calculated spending amid the current macro environment, positioning the personal care space well in the near and intermediate term given its “relative inelasticity and resilience.”