OGN - Organon Stock Is Still Worth A Look
2024-02-23 22:44:00 ET
Summary
- A quarter has passed since I initiated a "Buy" rating on Organon. In this time, the stock has gained around 63% - that's 7x more than S&P 500 index.
- Despite established brand segment challenges, Organon's proactive measures to sustain growth through portfolio optimization and market expansion underscore a resilient business strategy.
- I don't believe that the FWD FCF yield of 21.1% will be sustainable. Its seemingly inevitable decline should lead to further growth of the Organon stock in the medium.
- Due to the combination of fundamental factors developing positively around OGN, I have decided to maintain my previous 'Buy' rating.
Introduction
A quarter has passed since I initiated a "Buy" rating on Organon & Co. ( OGN ). In this time the stock has gained around 63% - that's 7 times more than the return of the S&P 500 Index ( SPX ) ( SPY ) in the same period:
Seeking Alpha, the author's coverage of OGN
