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 the potential benefits Perrigo Company could experience from recent regulatory developments in the infant formula market. The U.S. FDA’s Operation Stork Speed initiative aims to enhance the safety and reliability of infant formula, which could favor Perrigo as a domestic manufacturer. The initiative includes a comprehensive review of infant nutrition standards, which have not been updated since 1998, and seeks to ensure that domestic manufacturing standards remain stringent.
With the FDA’s increased scrutiny on infant formula, Perrigo is well-positioned to gain from any regulatory updates that may arise. The focus on domestic manufacturing, as opposed to international imports, could provide Perrigo with a competitive edge. The current administration’s efforts to level the playing field for U.S.-based manufacturers may lead to Perrigo capturing a larger market share, especially if international competitors face challenges meeting the updated standards.
According to TipRanks, Anderson is a 5-star analyst with an average return of 16.0% and a 43.09% success rate. Anderson covers the Consumer Cyclical sector, focusing on stocks such as Helen Of Troy, Inter Parfums, and Coty.