Perrigo stock performance snapshot

Perrigo (PRGO) has drawn investor attention after a prolonged slide, with the stock down about 23% year to date and about 55% over the past year, closing recently at US$10.67.

That recent 2.01% 1 day share price gain sits against a weaker trend, with the 30 day share price return down 8.33% and the 1 year total shareholder return down 55.40%. Momentum still looks weak despite short term stabilisation.

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With Perrigo trading at US$10.67 and sitting at a sizeable discount to analyst targets and some intrinsic value estimates, you need to ask: is the stock on sale here, or is the market already discounting future growth?

Most Popular Narrative: 35.3% Undervalued

Against Perrigo's last close at $10.67, the most widely followed narrative anchors fair value at $16.50, framing the current share price as a steep discount.

Recent new business wins in US store-brand OTC have outpaced distribution losses for the first time since the 2024 reset. Net new contract gains are expected to add $75M+ to sales in the second half, directly supporting a step-change in revenue growth and operating income.

Want to see what is sitting behind that growth push and fair value call? The narrative leans heavily on margin repair, modest revenue assumptions, and a future earnings multiple that is anything but conservative.

Result: Fair Value of $16.50 (UNDERVALUED)

However, this upside story still depends on more consistent execution in infant nutrition and OTC. At the same time, weak category demand and intense competition could quickly challenge that fair value case.

Next Steps

Given the mix of concern and optimism in the story so far, it makes sense to review the data yourself and move quickly to form an independent view with the help of the 4 key rewards and 1 important warning sign

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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.