Piper Sandler reiterated its positive stance on shares of Perrigo Company plc (NYSE:PRGO) on Monday, maintaining an Overweight rating with a $36.00 price target.
The company saw a recovery in personal care spending, noting improvements across all brands and categories it covers compared to weaker results in May. Perrigo’s performance was particularly notable, with private label over-the-counter (OTC) sales and volumes growing strongly, strengthening its Overweight rating.
Perrigo’s Opill sales and volumes have increased sequentially following the previous month’s initial data. Additionally, the company’s infant formula business appears to have reached a state of plateau, with market share showing signs of stabilization. These factors contribute to continued analyst confidence in Perrigo’s stock potential.
The update also covered the performance of other companies in the sector. Kimberly-Clark Corporation (KMB) has seen a recovery in sales, moving from negative values in the previous four-week period to levels that are now flat or positive quarter-over-quarter.
Despite this positive change for Kimberly-Clark, the outlook for KVUE remains neutral, as the company’s sales and volumes are still predominantly negative.
Piper Sandler’s reiteration of its Overweight rating on Perrigo reflects a favorable view of the company’s recent sales trends and market positions across its various business units. The company’s approval suggests that it expects continued strength in Perrigo’s stock performance, supported by solid sales and volume growth across its key product categories.
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