Rothschild Redburn analyst Natalya Davies initiates coverage on Repligen (NASDAQ: RGEN) with a Buy rating and a price target of $160.00.

The analyst comments: "Repligen has demonstrated a track record of outperformance versus both its addressed markets and peers, bolstered by an advantaged position in high-value bioprocessing niches such as ATF-based cell retention and in-line PAT. We believe its exposure to the most intensity-driven segments of biologics manufacturing – where process complexity, not scale, dictates value – supports a more durable growth and margin profile than peers. Repligen’s premium valuation relative to US life science peers is therefore justified, in our view. We launch coverage with a Buy recommendation and a DCF-implied price target of $160.

Repligen is a leading pure-play bioprocessing company with an estimated market share of 4%, which presents a substantial long-term growth opportunity. It derives the majority of its revenue (55%) from filtration products and consumables, propelled by COVID-19, followed by chromatography (21%), Fig 75. The company’s largest end market is biopharma, representing 55% of revenue (Fig 76). It is more skewed towards clinical applications (c60% of revenue) than commercial (c40%), which we expect to gradually transition as a portion of these clinical phase drugs progress through the regulatory approval pathway. The company has 75% of revenue recurring, broadly in line with bioprocessing peers."

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Shares of Repligen closed at $127.09 yesterday.