HSBC initiates coverage on Repligen stock with Buy rating, $150 target

Investing.com - HSBC initiated coverage on Repligen (NASDAQ:RGEN) with a Buy rating and a price target of $150.00 on Wednesday. The stock, currently trading at $133.67, has a strong Buy consensus among analysts with targets ranging from $135 to $220. According to InvestingPro data, the company maintains excellent financial health with a current ratio of 8.59.

The investment bank views Repligen as offering "pureplay exposure to bioprocessing," which it describes as one of the highest growth areas in the sector. HSBC estimates Repligen will achieve organic revenue growth in the low to mid-teens over the next three years.

This projected growth rate would outpace the broader bioprocessing market by approximately 5% and exceed the overall life sciences market by 5-8%, according to HSBC’s analysis. The firm attributes Repligen’s competitive advantage to its innovation speed, portfolio breadth in bioprocessing, and agility.

HSBC also notes that a "local-for-local approach" amid tariffs and regulatory barriers creates tailwinds for new equipment and consumable orders. This positioning helps Repligen maintain the "right balance to outpace its larger peers."

The firm identified three key issues facing Repligen: sustainability of recent order growth momentum, potential constraints from an elongated biotech funding cycle, and competitive positioning against industry giants such as Thermo Fisher and Danaher.

In other recent news, Repligen has been the focus of multiple analyst updates and strategic developments. Evercore ISI upgraded Repligen to Outperform, raising its price target to $155.00, citing an improved outlook following challenges related to COVID-19 and other operational hurdles. KeyBanc reiterated its Overweight rating with a $220.00 price target, emphasizing the growth potential of Repligen’s filtration business, which represents a significant portion of the company’s revenue. TD Cowen and Stifel both maintained their Buy ratings, with price targets of $200.00 and $207.00, respectively, reflecting confidence in the company’s growth dynamics and product offerings.

Additionally, H.C. Wainwright reiterated its Buy rating with a $180.00 price target, highlighting Repligen’s strategic partnership with Novasign. This collaboration aims to enhance bioprocess development through innovative workflows and modeling platforms, with Repligen investing in Novasign to support its expansion. These developments indicate a positive sentiment among analysts about Repligen’s future prospects.

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