As previously reported, BofA Merrill Lynch downgraded Perrigo (PRGO) two notches to Underperform from Buy as analyst Sumant Kulkarni believes that the company's operational challenges could create an "erosion of investor confidence" that could limit the stock's performance for some time. The analyst, who noted that no other public bidder emerged for Perrigo when Mylan (MYL) was in the midst of its hostile bid, said Mylan does not need to pursue any large deals now that it is buying Meda. Kulkarni cut the firm's target on Perrigo shares to $109 from $183.