UPDATE: Bank of America Upgrades Perrigo on Financial Engineering Deal Adding Value

In a report published on Monday, Bank of America analyst Gregg Gilbert upgraded Perrigo (NYSE: PRGO) from Underperform to Neutral and raised the price target on the company from $116 to $133.

In the report, Bank of America stated, "PRGO announced that it will acquire Elan for $8.6bn in cash and stock (or $6.7bn net of ELN's cash position). ELN is an Irish entity with a large cash position and a royalty stream (on MS treatment Tysabri). In becoming an Irish-domiciled company with this deal, PRGO stands to garner significant tax (and operational) synergies, boosting EPS significantly in all future years."

Perrigo closed on Friday at $134.23.