Perrigo Company plc (NYSE: PRGO) received a revised price target from Canaccord, which has lowered its estimate from $40 to $20 while maintaining a Buy rating. This adjustment, announced on November 6, 2023, follows the company’s third-quarter results that exceeded expectations but revealed weaker-than-anticipated sales, primarily due to declines in over-the-counter (OTC) products and nutrition sales.
In its third-quarter report for 2025, Perrigo disclosed revenues of $1.04 billion, marking a 4.06% decrease from the same period last year. The company reported an operating income of $73 million, down from $80 million in the previous year. President and CEO Patrick Lockwood-Taylor highlighted the company’s strong in-market performance, noting gains in dollar, unit, and volume share across five of seven store-brand categories. This indicates that consumers continue to favor Perrigo products on store shelves despite the softer consumption trends observed during the quarter.
Strategic Shift in Focus
On November 5, 2023, Perrigo announced a strategic review of its infant formula business, pivoting toward higher-margin branded products. As a significant supplier of store-brand baby formula sold under various retailers’ labels, Perrigo has faced challenges related to quality issues at manufacturing facilities, which raised concerns about potential contamination risks. The company aims to address these challenges as it seeks to enhance its product offerings.
Perrigo has built a reputation as a leading consumer health company, with over a century of experience in delivering high-quality health and wellness solutions, primarily in North America and Europe. While Canaccord acknowledges Perrigo’s potential as an investment, it also suggests that certain AI stocks may offer greater promise for higher returns with reduced risks.
As the market reacts to these developments, investors will be closely monitoring Perrigo’s strategic decisions and performance in the coming quarters. The adjustments in price targets and ratings reflect the ongoing evaluation of market conditions and the company’s ability to adapt to changing consumer needs.
