UPDATE: Stephens Starts Recro Pharma (REPH) at Overweight

(updated to add analyst comment)

Stephens analyst Jacob Johnson initiates coverage on Recro Pharma (NASDAQ: REPH) with a Overweight rating and a price target of $14.00.

The analyst comments "By restructuring their acute care business, we believe REPH is beginning to focus on their CDMO. REPH has also been evaluating splitting the businesses into two separate companies. We think this would unlock the value of the CDMO business as it would result in a pure-play CDMO with higher consolidated profitability, increased FCF to fund additional growth, and a more clear valuation framework. Our $14 PT ascribes zero value to the therapeutics business (we view as free option), assuming 10.5x for the CDMO business alone."

For an analyst ratings summary and ratings history on Recro Pharma click here. For more ratings news on Recro Pharma click here.

Shares of Recro Pharma closed at $11.52 yesterday.

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