Macquarie sets Suven Pharma stock target at INR1,500, Outperform

Published 19/02/2025, 11:52
Macquarie sets Suven Pharma stock target at INR1,500, Outperform

On Wednesday, Macquarie analysts initiated coverage on Suven Pharmaceuticals Ltd (SUVENPHA:IN), assigning an Outperform rating with a price target of INR1,500.00. The new coverage reflects the firm’s positive outlook on Suven Pharma’s transition from a traditional small molecule Contract Development and Manufacturing Organization (CDMO) to a technology-focused entity that specializes in high-growth areas such as Antibody-Drug Conjugates (ADCs), Oligonucleotides, and Proteolysis Targeting Chimeras (PROTACs).

The analysts highlighted the company’s strategic expansion in these niche segments, which they believe will drive meaningful growth. This expansion strategy includes both organic developments and acquisitions, alongside the continued growth of its core small molecules CDMO business. Macquarie’s analysis indicates that Suven Pharma is well-positioned to benefit from the fastest-growing segments within the overall CDMO market.

The report from Macquarie points out that the addition of niche capabilities is expected to increase the Total (EPA:TTEF) Addressable Market (TAM) for Suven Pharma. Moreover, the company’s strong relationships with innovator pharmaceutical companies that operate in these segments are seen as a significant advantage.

Macquarie forecasts that Suven Pharma’s revenue, combining proforma Suven and Cohance, is projected to grow fourfold by the fiscal year 2030, based on the FY24 revenue base. This projection underscores the analysts’ confidence in the company’s growth trajectory and its potential to outperform in the market.

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