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On Thursday, Repligen Corporation (NASDAQ:RGEN) saw its price target increased by Jefferies from $160.00 to $165.00, while the firm maintained a Hold rating on the stock. Currently trading at $164.19, the company’s stock has seen a -24.53% return over the past year. The adjustment follows a period of stock performance that saw Repligen shares decline approximately 15% since the earnings report from industry peer Sartorius. According to InvestingPro analysis, the stock is currently trading at high EBIT and EBITDA valuation multiples.
Matthew Stanton of Jefferies acknowledged Repligen’s strong fourth-quarter results and the company’s 2025 guidance, which came in slightly ahead of expectations. With current revenue at $633.51 million and a gross profit margin of 51.23%, Stanton highlighted the positive order commentary provided by Repligen as a catalyst for the stock’s movement. He pointed out that the company’s focus has now shifted to a variety of differentiated growth drivers expected in 2025, along with several upcoming new product introductions that he believes are key to driving an upside to the financial forecasts throughout the year.
The analyst also noted the growth spread between Repligen and its peers, which is projected at around 5% in 2025 as the market normalizes. While the company wasn’t profitable in the last twelve months, InvestingPro data indicates analysts expect profitability this year, with an EPS forecast of $1.55 for 2024. Stanton suggested that this growth differential is significant for maintaining Repligen’s premium multiple in the bioprocessing market.
Repligen’s recent performance and future outlook appear to be shaped by its strategic initiatives and the introduction of new products. With a strong financial health score rated as "GOOD" by InvestingPro, which offers 8 additional key insights about the company in its comprehensive Pro Research Report, these efforts are seen as essential to the company’s ability to outperform and sustain its valuation compared to competitors in the sector.
The updated price target implies a modest upside potential from Repligen’s current trading levels, reflecting a cautious optimism from Jefferies about the company’s ability to meet its growth targets and successfully launch its new products in the coming year. With a current ratio of 10.44 and moderate debt levels, the Hold rating indicates that while Jefferies recognizes the company’s strengths, it also advises investors to maintain their current positions until further evidence of Repligen’s growth trajectory materializes.
In other recent news, Repligen Corporation reported its fourth-quarter 2024 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.44, exceeding the forecasted $0.41, while also reporting revenue of $168 million, slightly above the anticipated $167.67 million. These results reflect a positive trend for Repligen, which also experienced a 13% increase in non-COVID revenue growth during the same period. Furthermore, the company plans to launch new products in 2025, including single-use mixers, which are anticipated to contribute to its growth. Repligen has set its 2025 revenue guidance at $685-$710 million, projecting an 8-12% growth. The firm also expects its adjusted EPS for 2025 to be between $1.67 and $1.76. Analyst feedback from firms such as Stifel and JPMorgan has been focused on Repligen’s strong order intake and the adoption of its ATF technology, which is gaining traction in the market. These developments are part of Repligen’s broader strategy to maintain its growth momentum and expand its market presence.
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