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On Tuesday, Evercore ISI began coverage on Repligen Corporation (NASDAQ:RGEN), a leading bioprocessing company, assigning an In Line rating and setting a price target of $155.00. The firm recognized Repligen as a high-quality pure-play bioprocess supplier, with current revenues of $634.4 million and a market capitalization of $8.58 billion. According to InvestingPro data, the stock is currently trading at $152.81, with analyst targets ranging from $155 to $225.
Repligen has faced two consecutive years of organic revenue declines, which reflected broader industry challenges and company-specific headwinds. InvestingPro analysis shows the company is currently not profitable, with a negative EPS of $0.46 over the last twelve months. Despite this, Evercore ISI anticipates that Repligen will benefit from a market recovery and expects the company to grow at a rate of mid-teens percentage points or more, outpacing the market by 500-1000 basis points. This optimistic outlook is based on the company’s differentiated products and a higher mix of clinical products.
The analyst highlighted that fiscal year 2025 is expected to be a transitional period for Repligen, leading to a return to normalized growth patterns. While the recent downturn in demand has led to significant margin volatility, the company maintains a strong gross profit margin of 50.23% and impressive liquidity with a current ratio of 8.41. Evercore ISI projects a recovery in margins, with an improvement of over 200 basis points per year in operating margin expansion. Subscribers to InvestingPro can access detailed financial health scores and additional insights through comprehensive Pro Research Reports.
Evercore ISI pointed out that Repligen’s distinct position as a pure-play bioprocess company makes it an attractive investment as the end market begins to recover. The stock currently has a consensus analyst recommendation of 1.84 (Buy), though nine analysts have recently revised their earnings expectations downward. The firm also cautioned that the recovery could experience further inconsistencies, especially considering Repligen’s sensitivity to the unpredictable macroeconomic environment.
The firm concluded that Repligen’s current valuation is demanding and difficult to justify. This assessment aligns with InvestingPro’s Fair Value analysis, which indicates the stock is currently overvalued. The company’s EV/EBITDA multiple stands at 100.2x, supporting the demanding valuation view. As a result, Evercore ISI prefers to maintain a neutral stance, waiting for either greater macroeconomic certainty or clearer indications of the company’s potential to outperform expectations. The $155 price target reflects multiples of approximately 10.5 times the fiscal year 2026 enterprise value to revenue, 46 times EBITDA, and 66 times P/E.
In other recent news, Repligen Corporation reported its fourth-quarter 2024 financial results, revealing a slight revenue increase to $167.5 million, a 1% rise from the previous year. However, the company’s adjusted earnings per share (EPS) fell to $0.44 from $0.48 in the fourth quarter of 2023. Repligen has also provided guidance for 2025, projecting a revenue growth of 10%-14% and an adjusted EPS range of $1.67 to $1.76. Analysts at Leerink Partners reiterated an Outperform rating with a $200 price target following Repligen’s acquisition of a bioprocessing desktop portfolio for $70 million, expected to add $10 million in sales this year.
Benchmark maintained a Hold rating, noting Repligen’s financial performance fell short of their expectations, while H.C. Wainwright reaffirmed a Buy rating with a $180 price target, citing the company’s alignment with their revenue projections. Canaccord Genuity raised their price target to $170, maintaining a Hold rating and indicating that Repligen’s initial 2025 guidance aligns with Wall Street expectations. KeyBanc Capital Markets reiterated an Overweight rating with a $220 price target, highlighting Repligen’s strong fourth-quarter performance and positive industry growth indicators. The company’s recent acquisition of Tantti Laboratory Inc. and the launch of AVIPure dsRNA resin are also seen as strategic moves to enhance its market offerings.
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