Healthcare
OTC birth control rollout to drive considerable earnings inflection - the opportunity for Opill in the US is huge (estimates an incremental ~60% accretion to EPS if PRGO achieved similar pricing and penetration (~10%) as it did in the UK). PRGO shares continue to trade at a trough valuation even though the company has been “cleaned up” over the past 5 years following the exit of 3 ancillary businesses and last year’s replacement of a previously deal-focused CEO. Trades at ~9.6x FY24 EBITDA and ~11x EPS (vs. peers in the low-teens EBITDA / high-teens EPS multiples). TP $60 (80% upside).
Edition: 178
- 26 January, 2024