Canaccord initiates Repligen with Hold, sets $165 price target

Published 12/17/2024, 06:04 AM
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On Monday, Canaccord Genuity began coverage on shares of Repligen (NASDAQ:RGEN) Corporation (NASDAQ:RGEN), a company that specializes in bioprocessing products and systems, with a Hold rating and a price target set at $165. Currently trading at $160.92, the stock sits between its 52-week range of $113.50 to $211.13.

According to InvestingPro data, the company maintains strong financial health with a current ratio of 10.44, indicating robust liquidity. The firm highlighted Repligen's transition from primarily offering consumables and unit operations to providing fully integrated solutions in the bioprocessing industry. The products from Repligen are integral in the production of biologic drugs, including monoclonal antibodies and emerging therapies such as cell and gene treatments.

Repligen's product offerings encompass a range of bioprocessing needs, such as filtration, fluid management, chromatography, process analytics, and proteins. The company's shift towards offering more comprehensive solutions is part of its growth strategy, aiming to capitalize on the expanding market for biologic drug production.

The Canaccord Genuity report also referred to a recent survey, which indicates that while Repligen has established a robust portfolio and is well-positioned for long-term growth, the current valuation of the company's shares is seen as fair. This assessment suggests that the market has already accounted for the company's prospects in the current share price.

The Hold rating reflects a neutral stance on the stock, implying that the analyst believes Repligen's stock is neither undervalued nor overvalued at the current market price. The price target of $165 suggests that Canaccord Genuity does not anticipate significant movement in the stock price over the next 12 months.

Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value. The company's EV/EBITDA ratio of 94.49 indicates a premium valuation, while its market capitalization stands at $9.03 billion. Discover detailed valuation metrics and 1,400+ comprehensive Pro Research Reports by subscribing to InvestingPro.

In other recent news, Repligen Corporation has been making headlines with its strong financial performance and strategic acquisitions. The company reported a 10% year-over-year increase in sales and a 6% rise in orders during its Third Quarter 2024 Earnings Conference Call. Adjusted net income increased to $24 million, with a forecast of $85 million to $89 million for the full year. Repligen has adjusted its full-year revenue guidance to a range of $630 million to $639 million, demonstrating confidence in its growth strategy and favorable market conditions.

The company's CDMO business achieved its highest revenue in 18 months, with significant growth across various franchises. This includes a mid-single-digit revenue increase in pharma and a 20% growth in CDMO revenues. In addition, Repligen launched the Training and Innovation Center in Waltham, aimed at enhancing customer engagement and support.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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