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On Friday, RBC Capital Markets adjusted the price target for Recordati (BIT:RECI) SpA (REC:IM) (OTC:RCDTF), raising it slightly to EUR55.50 from the previous EUR55.00 while maintaining a Sector Perform rating on the shares. The adjustment follows the release of Recordati’s 2024 Annual Report and its first-quarter results. Additionally, the company recently unveiled its three-year strategic plan.
In his statement, the RBC Capital analyst noted the alignment of Recordati’s mid-point growth assumptions with RBC Capital’s revenue forecast of EUR2.9 billion by 2027, excluding potential business development. The analyst’s upside scenario, which includes successful capital deployment through product acquisitions, projects Recordati’s revenue to reach EUR3.1 billion, aligning with the company’s complete three-year plan expectations.
The analyst’s decision to raise the price target is also influenced by recent currency fluctuations and the company’s performance in the first quarter of the year, which led to a slight increase in revenue forecasts by 1-2%. The new price target is derived from a Discounted Cash Flow (DCF) analysis.
Recordati, a pharmaceutical company, has laid out a robust plan for growth over the next few years. The analyst’s report reflects a cautious optimism about the company’s ability to meet its financial goals through both organic growth and strategic acquisitions.
The current price target suggests a view that Recordati’s stock is expected to perform in line with the overall market sector, based on the analysis provided by RBC Capital Markets. Recordati’s plans and recent financial results have provided the basis for this updated financial outlook.
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