Company Update : Perrigo Co PLC (NYSE:PRGO)

Perrigo Co PLC (NYSE:PRGO) announced its rejection of the unsolicited offer from Mylan (MYL) to acquire all of the outstanding shares of Perrigo for $60.00 per share in cash and 2.2 Mylan ordinary shares for each ordinary Perrigo share. It stated, “The board previously concluded that Mylan’s unsolicited proposal of $205.00 per share significantly undervalued the Company and its future growth prospects and was not in the best interests of Perrigo’s shareholders. Today’s announcement from Mylan proposes a price that is lower than the previously rejected proposal. Based on Mylan’s unaffected price of $55.31 per share on March 10, 2015, the last day of trading prior to widespread public speculation that Teva was considering an offer for Mylan, the value of the Offer is $181.67 per Perrigo share. Shareholders are strongly advised to take no action in relation to the Offer.”

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Perrigo Co PLC (NYSE:PRGO) is currently trading 6.54% below its 52-week-high, 60.83% above its 52-week-low. The 12-months range for the stock is $125.37 – $215.73. Perrigo Co PLC (PRGO) has a price to earnings ratio of 131.9 versus S&P 500 average of 17.42. PRGO stock price has outperformed the S&P 500 by 17.8%. The Generic Drugs company is currently valued at $27.56 billion and its share price closed the last trading session at $201.63. The stock has a 50-day moving average of $177.18 and a 200-day moving average of $161.84.

Perrigo Co PLC (PRGO) current short interest stands at 2.59 million shares. It has increased by 17% from the same period of last month. Around 2% of the company’s shares, which are float, are short sold. With a 10-days average volume of 3.16 million shares, the number of days required to cover the short positions stand at 0.9 day.

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There are currently fifteen analysts that cover PRGO stock. Of those fifteen, eight have a Buy rating, seven have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $194.64.

A recent analyst activity consisted of Deutsche Bank reiterating their Buy stance. Deutsche Bank increased their price target on PRGO from $205 to $208. This corresponds to a 3.16% upside from the last closing price. On the date of report, the stock closed at $201.63.

Jefferies reiterated their Buy stance, and increased their price target on PRGO stock from $187 to $203. This corresponds to a 0.68% upside from the last closing price. On the date of report, the stock closed at $201.5.

Another research firm was Stifel Nicolaus who downgraded their Buy rating to Hold on April 21. On the date of report, the stock closed at $192.82.

Company profile

Perrigo Company PLC is a global healthcare supplier that develops, manufactures and distributes OTC and generic prescription pharmaceuticals, infant formulas, nutritional products, active pharmaceutical ingredients and pharmaceutical and medical diagnostic products. The Company’s primary markets and locations of manufacturing and logistics operations are the US, UK, Mexico, and Australia.

Company Update : Perrigo Co PLC (NYSE:PRGO) was last modified: April 24th, 2015 by Seth Talluto