Canaccord Genuity analyst Susan Anderson maintained a Buy rating on Perrigo Company (PRGO – Research Report) yesterday and set a price target of $42.00.
Susan Anderson has given her Buy rating due to a combination of factors that highlight Perrigo Company’s strategic improvements and growth potential. Despite a slight decline in overall sales for the fourth quarter, the company demonstrated resilience with a notable 17% increase in infant formula sales, indicating a recovery in this segment. This growth is attributed to market share gains and improved customer inventory levels, alongside successful compliance with FDA regulations at their Wisconsin facility.
Furthermore, Perrigo’s efforts to enhance profitability through cost-saving initiatives and efficiency programs have started to bear fruit, as evidenced by the leverage in operating expenses and improved EBIT margins. The company’s focus on expanding its branded business and the positive momentum in nutrition, skin care, and women’s health sectors also contribute to a favorable outlook. With the upcoming investor day expected to provide further insights into FY25 guidance and long-term goals, Anderson remains optimistic about Perrigo’s trajectory, maintaining a price target of $42.
PRGO’s price has also changed moderately for the past six months – from $29.270 to $24.130, which is a -17.56% drop .