Labor Talks and Production Disruptions Could Be a Game Changer for Perrigo (PRGO)

• Perrigo Company plc announced that Teamsters Local 210 workers at its Bronx manufacturing facilities resumed bargaining on September 17, 2025, after more than two weeks of striking over overtime protections and retirement benefits, with the involvement of Senate Minority Leader Chuck Schumer.
• This labor conflict involving key production staff has introduced operational uncertainty that could influence Perrigo's ability to supply core generic over-the-counter products.
• We'll consider how disruptions to manufacturing and renewed labor negotiations could affect Perrigo's efficiency targets and operational outlook.

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Perrigo Investment Narrative Recap

To be a Perrigo shareholder, one needs confidence in the company's ability to capitalize on private label growth and long-term self-care trends, while managing the supply chain and cost pressures that come with running a margin-challenged business. The ongoing labor disputes at the Bronx facility introduce a new element of operational risk, especially around Perrigo’s crucial ability to reliably supply its generic over-the-counter products in the short term; any disruption at this plant could delay efficiency gains and pressure margins, but impacts to broader strategy or guidance have not yet been signaled by the company. Of recent announcements, Perrigo’s reiterated earnings guidance for 2025 stands out the most, confirming management’s commitment to previously communicated profit targets despite sales headwinds and this labor issue. If achieved, these targets would partly depend on operational continuity and effective cost controls, both of which could be tested if labor negotiations stretch or escalate further. Yet, before you get too comfortable, consider how even brief labor disruptions can impact a low-margin business like this one...

Read the full narrative on Perrigo (it's free!)

Perrigo's projections indicate revenues of $4.6 billion and earnings of $183.6 million by 2028. Achieving these targets implies a 1.7% annual revenue growth and a $243.1 million increase in earnings from the current level of -$59.5 million.

Uncover how Perrigo's forecasts yield a $34.25 fair value, a 65% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range from US$25.60 up to US$91.42 per share. While some see deep value, the risk of product quality and supply chain challenges may weigh heavily on future performance, you may want to compare these views before deciding where you stand.

Explore 4 other fair value estimates on Perrigo - why the stock might be worth over 4x more than the current price!

Build Your Own Perrigo Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Perrigo research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Perrigo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Perrigo's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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