Prestige Consumer Healthcare is top small-cap pick at Oppenheimer
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A strong earnings result and a still attractive price to earnings ratio for Prestige Consumer Healthcare (NYSE:PBH) is prompting a more bullish view from Oppenheimer analyst Rupesh Parikh.

The New York-based over-the-counter healthcare and household product distributor reported a beat on top and bottom lines in its fiscal fourth quarter report on Thursday evening, while promoting diluted EPS and revenue outlook ranges of $4.18 to $4.23 and $1.12 billion to 1.13 billion respectively. Both forecasts came in above Wall Street expectations as well.

Despite the strong results, a broad sell-off on Friday tamped down the expected pop in share price. As such, shares remain well below peaks marked in January.

âFollowing the recent pullback, and a fairly upbeat guide on Thursday in the context of the current environment, we believe shares are now positioned to outperform in the current difficult
small-cap backdrop,â Parikh explained. 

He advised that the company's portfolio of products is less economically sensitive than many of its peers, its domestic-driven sales, and strong control of price and supply chain problems only add to its attractive valuation. Meanwhile, Parikh indicated that recent portfolio repositioning and balance sheet management could open the door to M&A action, âwhich could drive further upside over time.â

As a result, Parikh pushed his price target to $63 and upgraded shares to âOutperformâ from âPerformâ while assigning a âtop pickâ designation to the defensively-oriented stock. Shares gained 0.81% shortly after Mondayâs market open. 

Other top picks touted by Parikh included Costco (COST), Dollar General (DG), Ulta Beauty (ULTA), Walmart (WMT), and Church & Dwight Co. (CHD). Prestige Consumer Healthcare (PBH) was noted as the only small-cap stock to make the firmâs list.
Read more on the companyâs recent earnings results.