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On Thursday, Jefferies made an adjustment to the price target for Perrigo Co . (NYSE: PRGO) shares, bringing it down to $30.00 from the previous $31.00 while maintaining a Hold rating on the stock. Currently trading at $26.63, the stock sits below the broader analyst target range of $27-$42, according to InvestingPro data. The adjustment came following Perrigo’s recent financial performance, which showed a substantial increase in earnings per share (EPS) despite a slight decline in revenue.
Perrigo reported a 106% surge in EPS, an indicator of profitability, even as its top-line results saw a 3.5% decrease. This contrast highlights the company’s ability to enhance value and efficiency without relying on a significant boost in market demand.
The analyst from Jefferies acknowledged the challenges faced by Perrigo, including consumer uncertainty and the impact of tariffs, which have introduced a degree of volatility. Nevertheless, the management team at Perrigo has expressed confidence in their ability to achieve their goals across various market conditions.
The firm’s ability to navigate these challenges and continue to deliver positive results will be crucial in affirming the company’s strategic direction. The current hold rating indicates that while Jefferies sees potential in Perrigo’s operational strategies, the lowered price target suggests a more cautious outlook on the stock’s near-term price performance.
In other recent news, Perrigo Company (NYSE:PRGO) plc reported its first quarter 2025 earnings, which exceeded analyst expectations, although its revenue fell short. The company posted an adjusted earnings per share of $0.60, surpassing the analyst consensus of $0.55. However, revenue was reported at $1.04 billion, below the projected $1.09 billion. Perrigo’s net sales experienced a 3.5% decline year-over-year, influenced by divested businesses, exited product lines, and currency translation, with organic net sales decreasing by 0.4%. The company noted strong growth in adjusted EPS and margin expansion, driven by infant formula and over-the-counter brands. Adjusted gross margin increased by 440 basis points to 41.0%, and adjusted operating margin rose by 550 basis points to 14.0%. These improvements were attributed to recovery in the infant formula sector and the benefits of the company’s supply chain reinvention program. For the full year 2025, Perrigo adjusted its net sales growth target range to 0% to 3%, citing macroeconomic uncertainty, while reaffirming its adjusted EPS range of $2.90 to $3.10.
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