Rothschild Redburn Starts Repligen (RGEN) at Buy

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."

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

Shares of Repligen closed at $127.09 yesterday.

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