On Monday, Piper Sandler confirmed its positive stance on shares of Perrigo Company plc (NYSE:NYSE:PRGO), maintaining an Overweight rating with a $36.00 price target.
The firm observed an uptick in personal care spending, noting improvements across all covered brands and categories compared to weaker outcomes in May. Perrigo's performance was particularly highlighted, with private label over-the-counter (OTC) sales and volumes demonstrating robust growth, reinforcing the Overweight rating.
Perrigo's Opill sales and volumes have reportedly seen a sequential rise following the initial data from the previous month. Moreover, the company's infant formula sector appears to have reached a steady state, with market share showing signs of stabilization. These factors contribute to the analyst's continued confidence in Perrigo's stock potential.
The update also touched on the performance of other companies within the sector. Kimberly-Clark Corporation (NYSE:KMB) experienced a resurgence in sales, moving from negative figures in the prior four-week period to levels that are now flat to positive quarter-to-date.
Despite this positive shift for Kimberly-Clark, the outlook for KVUE remains neutral, as sales and volumes for the company are still predominantly negative.
Piper Sandler's reiteration of the Overweight rating on Perrigo share reflects a favorable view of the company's recent sales trends and market positions in its various business units. The firm's endorsement suggests an anticipation of continued strength in Perrigo's stock performance, backed by solid sales and volume growth in key product categories.
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