Loading...
Loading...
In a report published Tuesday, Stifel Nicolaus analyst Annabel Samimy reiterated a Buy rating on
Perrigo CompanyPRGO, and raised the price target from $125.00 to $145.00.
In the report, Stifel Nicolaus noted, “Perrigo is acquiring Irish-domiciled Elan for $8.6bn ($16.50/share, cash and equity) to gain a low-tax platform for international expansion. Elan brings a long-duration Tysabri royalty stream, Phase II R&D asset for outcome-dependent monetization or termination, and strong cash flow without stretching PRGO's balance sheet (investment-grade debt <2.2x EBITDA in 1.5-2 years). Although clinical/biotech-centered Elan seems a significant departure from PRGO's core focus on consumer/generic acquisitions, the focus should be its financial attributes (tax rate to ~17% from 30%), long-duration growth (+19% Tysabri CAGR, with royalty step-ups) and international platform. Strategically, we see further international deal-making as PRGO pursues global expansion. With deal close expected C2H13, we estimate FY14 accretion of ~$0.11 (+1.4%), growing to $1.20 (+14%) in FY18.”
Perrigo Company closed on Monday at $125.17.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in