Perrigo Company (PRGO), mcap=$5.5bn, price $40.70 vs $39.86

– Generic pharmaceutical manufacturer after the recent acquisition of branded OTC consumer Healthcare company.
– Earnings/FCF set to double in 2 years once merger integration is finished.
– Multiple re-rating is expected as consumer product stocks tend to trade at a premium to the market.
– Business strength masked by covid-induced wild swings in OTC healthcare product demand.
– The new CEO successfully leads the transformation of the company.
– The CEO has sold two previous ventures and is also expected to sell PRGO around 2024 at a 100% premium to current prices.

– 2024 earnings/FCF expected to reach $4/share from the current pro-forma $2.45/share.
– Company sale seen at $80/share.

Exp. gain: +100% to $80/share by 2024.

Full PRGO write-up (free guest account required):

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