UPDATE: Stifel Nicolaus Initiates Perrigo Company with Buy, $125 PT; Leading Store Brand Pharma

Stifel Nicolaus initiates its coverage on Perrigo Company

with a Buy rating and a price target of $125. Stifel Nicolaus notes, "Premium pricing and valuation aside, Perrigo in our view represents one of the most uniquely positioned companies in our Specialty Pharmaceuticals universe, with an undisputed market leadership position in store brand (SB) over-the-counter (OTC) products and strong visibility into its future sources of growth. Importantly, the underlying trends specific to Perrigo's profile as a low-cost pharmaceutical provider strongly support our outlook for the company for the foreseeable future. Few companies in our space offer the growth, diversity, breadth of product reach, geographic exposure, and operating leverage as Perrigo. As such we believe PRGO shares should continue to trade at a premium to the sector." PRGO closed at $101.61 on Monday.