UPDATE: Goldman Sachs Downgrades Perrigo Company to Sell on Slowing Growth
Goldman Sachs downgraded Perrigo Company (NASDAQ: PRGO) from Neutral to Sell and lowers the price target from $117.00 to $110.00.
Goldman Sachs noted, "We downgrade PRGO to Sell from Neutral relative to our Attractive coverage view with a $110, 12-month price target for 0% upside (vs. 9% for coverage). Historically, PRGO's revenue/EPS has grown double digits with significant operating leverage. However, we estimate PRGO's growth rate will slow more in line with peers (our five-year EPS CAGR is at 8% vs. MYL/WPI at 9%). While peer multiples have contracted with slowing growth, the PRGO multiple remains high and the significant gap in valuation (20X versus 10X) is becoming more difficult to justify."
Perrigo Company closed at $110.23 on Thursday.
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