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Investing.com - Jefferies upgraded Recordati (BIT:RECI) SpA (BIT:REC) (OTC:RCDTF) from Hold to Buy on Monday, raising its price target to EUR61.50 from EUR55.00.
The upgrade comes as Jefferies’ analysis indicates the current share price implies just -1% to +2% revenue CAGR for 2024-2027, compared to company guidance of +9% to +11%.
Jefferies expects Recordati’s Rare Diseases segment, particularly products Enjaymo and Isturisa, to drive the company’s growth momentum.
The firm highlighted improving margin visibility and top-line momentum as key factors supporting the more positive outlook for the Italian pharmaceutical company.
Mergers and acquisitions remain central to Recordati’s strategy, with Jefferies estimating EUR450 million in annual spending needed to reach the company’s 2030 goal of doubling 2024 revenues, noting the recent Vazkepa deal reduces required M&A activity.
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