Analyst Susan Anderson of Canaccord Genuity maintained a Buy rating on Perrigo Company (PRGO – Research Report), retaining the price target of $42.00.
Susan Anderson’s rating is based on a combination of factors that highlight Perrigo Company’s strategic positioning and growth potential. The company has demonstrated a strong commitment to its infant nutrition business, with plans to invest significantly in expanding capacity and upgrading its network. This focus is expected to generate substantial free cash flow and improve profitability, especially as Perrigo capitalizes on its competitive advantage in the store brand segment, which faces less competition and regulatory pressure compared to branded competitors.
Additionally, Perrigo’s extensive portfolio of over 100 molecules allows it to compete across various price points, setting it apart from peers who operate in more limited segments. The company’s strategy to focus on high-growth categories, such as skin healing and women’s health, is anticipated to drive significant sales growth in the coming years. Furthermore, management’s efforts to streamline operations and explore potential divestitures of smaller brands are expected to enhance operational efficiency and financial performance. These strategic initiatives, combined with the company’s attractive valuation, underpin Susan Anderson’s Buy rating for Perrigo Company.