Perrigo (PRGO) Valuation After Securities Class Action Lawsuits Over Nestlé Infant Formula Acquisition

Perrigo (NYSE:PRGO) is back in the spotlight after a wave of securities class action announcements tied to its Nestlé infant formula acquisition, sharpening investor focus on legal risk, earnings quality, and long term strategy.

See our latest analysis for Perrigo.

The wave of class action announcements has landed on a stock that was already under pressure, with a roughly 47.7% year to date share price decline and a similar multi year total shareholder return slide signalling that momentum has clearly been fading.

If this legal overhang has you reassessing your exposure to healthcare names, it could be a good moment to explore other healthcare stocks that may offer a cleaner growth story and more resilient sentiment.

With shares trading well below analyst targets but earnings clouded by lawsuits and formula headwinds, is the market overreacting to near term pain or already discounting any realistic recovery in Perrigo’s future growth?

Most Popular Narrative Narrative: 36.7% Undervalued

With Perrigo last closing at $13.61 against a narrative fair value of $21.50, the valuation case leans heavily on a slow but profitable earnings recovery.

In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $4.6 billion, earnings will come to $183.6 million, and it would be trading on a PE ratio of 32.9x, assuming you use a discount rate of 7.7%.

Read the complete narrative.

Want to know what powers that leap from losses to meaningful profits? The story hinges on steady revenue, rising margins, and a punchy future earnings multiple. Curious how those pieces fit together into a bullish fair value?

Result: Fair Value of $21.50 (UNDERVALUED)

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

However, softer category demand and ongoing infant formula execution issues could still derail the margin recovery that underpins this upbeat undervaluation case.

Find out about the key risks to this Perrigo narrative.

Build Your Own Perrigo Narrative

If you are not fully aligned with this view or simply want to dig into the numbers yourself, you can quickly build a personalized narrative in just a few minutes, Do it your way

A great starting point for your Perrigo research is our analysis highlighting 3 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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