Perrigo (PRGO): Exploring Valuation as Investors Weigh Share Performance and Growth Potential

Perrigo (PRGO) shares have bounced around this month, with investors keeping an eye on the company’s performance and any new updates from management. Recent trading activity puts the spotlight back on what is driving this healthcare stock’s moves.

See our latest analysis for Perrigo.

Perrigo’s share price has struggled recently, reflecting a broader downward momentum, with a 23.7% drop over the past three months and a total shareholder return of -10.7% for the past year. While short-term moves have been mixed, the longer-term trend remains decidedly negative and signals that the market is still cautious about the company's growth potential and valuation outlook.

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With shares trading around 56% below analyst targets and Perrigo showing some improvement in net income, is this a discounted entry point for investors, or has the market already accounted for any potential rebound from this level?

Most Popular Narrative: 35.9% Undervalued

The most widely followed narrative pegs Perrigo’s fair value far above its last close, suggesting a striking disconnect between market price and projected fundamentals. Investors seeking clarity on what anchors this view should pay close attention to the growth drivers behind the current target.

Increasing consumer cost-consciousness is driving stronger adoption of store-brand (private label) OTC products, with Perrigo reporting accelerated unit and volume share gains. This structural shift is expanding Perrigo's addressable market and supports enduring top-line revenue growth. The aging global population and rising consumer interest in self-care and wellness continue to create longer-term demand tailwinds for Perrigo's OTC and nutrition products, providing stable, defensive revenue streams even in periods of macro uncertainty.

Read the complete narrative.

What powers this bullish outlook? There is a specific set of analyst expectations embedded in the calculation. The real surprise comes from daring assumptions about future margins and profit multiples that set this narrative apart from the pack. Dive in to discover precisely what might propel Perrigo’s shares dramatically higher if these bold forecasts play out.

Result: Fair Value of $33.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing weak category consumption and intense competition could slow Perrigo's revenue momentum, which may test the strength of even the most optimistic forecasts.

Find out about the key risks to this Perrigo narrative.

Build Your Own Perrigo Narrative

If you're not convinced by the prevailing view or want to dig into the numbers on your own, you can easily craft your own perspective in minutes. Do it your way.

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.

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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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