OGN - Four Reasons Why Organon Stock Is A Good Buy
2024-05-07 12:43:50 ET
Summary
- OGN has underperformed its healthcare peers and the benchmark over the past year, but this could change going forward.
- The company's dominant women's health product- Nexplanon is looking at double-digit growth in sales this year, even as market loss exclusivity fears have been ameliorated.
- OGN is on course to generate over $1bn of adjusted FCF this year, and it could play a key role in bringing down the leverage to 3.5-4x.
- Headcount is expected to drop by 5% this year, whilst one-time costs are expected to drop by 40% this year, whilst the stock is priced at an attractive PEF of 0.4x, and a discount to its long-term P/E average.
- The stock has broken out of its descending channel, whilst we've also seen the golden cross pattern play out.
Introduction
Organon Inc. ( OGN ), is a mid-cap pharmaceutical stock, noted for a portfolio of prescription therapies in the fields of women's health, biosimilars, and established medicines. Over a one-year time span, OGN's stock hasn’t made a great deal of progress, losing 2% of its value, and underperforming both its healthcare peers and the prime US equity benchmark....
Four Reasons Why Organon Stock Is A Good Buy