UPDATE: Goldman Sachs Upgrades Perrigo on Multiple Positive Factors
In a report published Tuesday, Goldman Sachs analyst Jami Rubin upgraded Perrigo (NYSE: PRGO) from Sell to Neutral, and raised the price target from $122.00 to $132.00.
In the report, Goldman Sachs noted, “We upgrade PRGO to Neutral from Sell. We are more favorable on the company's future capital allocation strategy, including M&A plans, post today's announcement. We believe the announced agreement to acquire ELN for $8.6 bn ($6.7 bn adjusted for cash) could, assuming the deal closes, provides PRGO a more flexible financial structure (including tax platform) to drive enhanced ROIC from any future deal activity. In addition, PRGO would also acquire a passive but growing royalty stream. Importantly, we see no change to management's business focus. Since being added to the Sell List on 1/10/13, PRGO is +13.6% vs. the S&P 500 + 14.5%. TTM shares are up 7.9% vs. the S&P up 21.6%.”
Perrigo closed on Monday at $125.17.
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