Prestige Consumer price target lowered to $65 from $77 at Oppenheimer

Oppenheimer analyst Rupesh Parikh lowered the firm’s price target on Prestige Consumer (PBH) to $65 from $77 and keeps an Outperform rating on the shares. The firm notes the company has announced plans to acquire Breathe Right and other brands from Foundation Consumer Healthcare for $1.045B. Oppenheimer is publishing an initial pro forma model and is assuming the acquisition closes on September 30 for modeling purposes. Looking at the upcoming print, the firm sees the potential for a below algorithm guide for the base business driven by risks of continued inventory de-stocking and an overall sluggish consumer staples consumption backdrop. In a difficult consumer staples small cap tape, Oppenheimer would be positioned to take advantage of any weakness on the print vs. playing for a positive catalyst.