OGN - Organon downgraded to neutral at BofA on valuation few catalysts

• BofA Securities has downgraded Organon ( NYSE: OGN ) to neutral from buy following the company's recent Q2 2022 results as there are better opportunities for upside in pharma.
• The firm also lowered its price target to $37 from $40 (~14% upside based on Thursday's close).
• Analyst Jason Gerberry said the company's "transformation via M&A has been slow to materialize, and the company is relatively catalyst-light over the next 12-18 months."
• He added that he doesn't see any "meaningful upward revision" regarding the company's long-acting contraceptive, Nexplanon, one of its top growth drivers.
• "Like many companies in our sector, OGN will need to navigate [foreign exchange] headwinds in 2H but expects its established brands unit to deliver flattish operational growth," Gerberry noted.
• Seeking Alpha's Quant Rating views Organon ( OGN ) as a hold with high grades for profitability, growth, and momentum .

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