The reduced price target comes after the pharmaceutical and consumer goods company reported lower-than-expected fourth quarter earnings yesterday.
"With a bevy of potentially large launches ahead we still see good growth potential - though we reduce our price target to $163 due to a combination of sector multiple compression and continued execution issues in the over-the-counter (OTC) businesses," Jefferies said in an analyst note.
Perrigo said its Branded Consumer Healthcare (BCH) division performed below the company's expectations during the period. Jefferies also reset its BCH expectations following the disappointing results.
Shares of Perrigo are down by 1.66% to $128.23 at the start of trading on Friday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
As a counter to these strengths, the team also finds weaknesses including a decline in the stock price during the past year, disappointing return on equity and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.