Perrigo Upgraded To Neutral By Goldman

By Emma CourtMarketsMarketWatch Pulse

Perrigo Co. was upgraded to neutral from sell by Goldman Sachs with a price target of $79 early Friday. Perrigo shares closed at $76.84 on Thursday. The company reported second-quarter profit and revenue beats Thursday and raised its 2017 guidance, marking it as the rare generic drugmaker that isn't suffering right now. Goldman Sachs analyst Jami Rubin, who had rated the company sell on concerns about pricing headwinds in February 2016, said that "this quarter may mark the beginning of an inflection point to stabilization, and pricing fears are fully appreciated by investors. While we are not prepared to call for a turn to growth, we think risk of future downgrades is probably behind us." Perrigo may still face generic pricing pressure, but the majority of the company's profits -- about 70% -- come from its consumer health business, Rubin said. Perrigo shares have surged 2% over the last three months, compared with a 1.8% rise in the S&P 500 .

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