UPDATE: Morgan Stanley Upgrades Perrigo Company to Overweight on Outlook, Valuation

Morgan Stanley upgraded Perrigo Company PRGO from Equal-weight to Overweight and raises the price target from $110.00 to $125.00. Morgan Stanley said, "Following adjusted guidance, we expect Perrigo to utperform on strong growth prospects. …. This is a multiple re-rating call. PRGO's forward P/E has contracted from 21x in early August to 17x following disappointing performance in Consumer (CHC) and Nutritionals. … After missing cons. expectations significantly in F1Q, mgmt delivered solid Nutritionals revs. in F2Q (1% above cons) and lowered full-year segment revenue growth from +8-12% YOY to +1-5% YOY. We now believe mgmt's Nutritionals segment guidance is attainable (we model +4% YOY)." Perrigo Company closed at $105.28 on Friday.