UPDATE: Deutsche Bank Raises PT to $115 on Perrigo Post Rosemont Acquisition
Deutsche Bank maintained Perrigo (NASDAQ: PRGO) with a Hold rating and raised the price target from $110.00 to $115.00.
Deutsche Bank noted, "Perrigo announced on Monday the acquisition of UK-based Rosemont Pharmaceuticals for £180M or USD $283M in cash. … Rosemont appears to be a well diversified business, with 2012 sales of £40M (approx $60M, growing mid to high single digit over a number of years) from over 90 products – none more than 8% of revenue. This acquisition on the surface, however, looks a little expensive on a revenue multiple basis – at approximately 4.5x sales vs typical generic acquisition multiples of approximately 2.8x sales in recent years. That said, niche acquisitions in the generic injectables segment have garnered an average revenue multiple of 4.5x."
Perrigo closed at $111.40 on Monday.
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