2023-07-20 13:08:32 ET
Wells Fargo launched its coverage of Repligen Corporation ( NASDAQ: RGEN ) with an Overweight rating and a $185 price target on Thursday, noting that the life sciences company reflects overly negative investor concerns over its near-term headwinds.
The analyst Timothy Daley argues that the firm’s Overweight rating on RGEN is based on the assumption that the near-term impact on the broader life sciences sector could be temporary and improve from the second half of 2023 into 2024.
While Repligen ( RGEN ) will not witness COVID-driven growth rates this year, "we believe investors are overemphasizing near-term disturbances," Daley opined, adding that the company’s long-term prospects remain bright.
"We think the company’s strategic market positioning in high-growth potential areas and unique product offerings should enable it to achieve its long-term revenue growth goals," the analyst wrote.
According to Daley, RGNE, which has lost ~9% over the past 12 months, reflects an outsized impact from an inventory de-stocking scenario, unfavorable COVID comps, and a weak biotech funding environment.
More on Repligen
- Repligen to acquire FlexBiosys in cash, stock deal
- Repligen: The Hidden Gem In Single-Use Solutions For Biopharma Manufacturing
For further details see:
Repligen a new Overweight at Wells Fargo; rules out near-term headwinds