UPDATE: Deutsche Bank Upgrades Perrigo Following Elan Acquisition Announcement

In a report published Tuesday, Deutsche Bank analyst David M. Steinberg upgraded Perrigo PRGO from Hold to Buy, and raised the price target from $120.00 to $150.00.

In the report, Deutsche Bank noted, “We believe the announced acquisition of Elan makes sense for a number of reasons (see below), and feel increasingly confident in the co's financial outlook for FY14. Post Monday's ~7% selloff, the $125 range (or 17x our pro forma CY14 EPS est) looks an attractive entry point – although technical factors and unease among some investors could create additional volatility near term. We now believe the shares are poised for outperformance over the next 12 months.”

Perrigo closed on Monday at $125.17.