Goldman Sachs Upgrades Perrigo to Neutral

According to Goldman Sachs, Perrigo PRGO is upgraded to Neutral. Goldman Sachs reported that it upgraded PRGO to Neutral post resolution of issues raised in the FDA warning letter related to its key facility. “Shares have rallied against our Sell rating where we misjudged (1) the resiliency of the stock amidst FDA uncertainty, and (2) reaction to recent deal activity that has driven material EPS accretion. From here, we find it hard to argue for meaningful upside given valuation but, importantly, the downside risk related to the warning letter is now behind us. Accordingly, we upgrade to Neutral and raise our PT to $80 from $56. Since 7/19/10, shares are +53% (+43% LTM) vs the S&P 500 +24% (+11% LTM) and our specialty pharma coverage +40% (+14% LTM).” Perrigo closed yesterday at $85.40.