Macquarie initiates Syngene stock with Outperform, sets INR835 target

Published 19/02/2025, 11:52
Macquarie initiates Syngene stock with Outperform, sets INR835 target

On Wednesday, Macquarie began coverage of Syngene International Ltd (NSE:SYNN) (SYNG:IN), a leading integrated contract development and manufacturing organisation (CDMO), assigning an Outperform rating and a price target of INR835.00. The research firm’s analysis highlighted Syngene’s strong positioning to capitalize on multiple growth drivers in the pharmaceutical sector.

The firm’s analysts pointed out that Syngene is set to benefit from India’s increasing prominence as a global sourcing hub, alongside a shift towards integrated service providers in the pharmaceutical industry. This transition is further bolstered by a growing demand for biologics CDMO services and the influence of the US Inflation Reduction Act (IRA), which is expected to impact the sector positively.

Syngene, which has evolved from a contract research organisation (CRO) to a full-fledged CDMO, has developed a comprehensive range of capabilities. These encompass the entire drug development spectrum, including small molecules, biologics, antibody drug conjugates, and oligonucleotides. The firm’s analysts believe that this broad spectrum of services positions Syngene as a key player in the industry.

The analysts also emphasized the importance of supply chain de-risking for major pharmaceutical innovators, a strategic move in which Syngene could play a significant role due to its integrated offerings. This strategy is particularly relevant in the current global economic climate, where supply chain stability is a critical concern for companies across various sectors.

Syngene’s stock is expected to perform well as a result of these factors, according to Macquarie’s analysis. The price target of INR835.00 reflects the firm’s confidence in Syngene’s growth prospects and strategic positioning within the pharmaceutical services industry.

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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