Jefferies analyst James Vane upgraded the rating on Recordati Industria Chimica e Farmaceutica SPA to a Buy today, setting a price target of €61.50.
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James Vane has given his Buy rating due to a combination of factors that highlight Recordati Industria Chimica e Farmaceutica SPA’s potential for growth and value. The current share price suggests a conservative revenue growth forecast, which contrasts with the company’s guidance of a significantly higher growth rate. This discrepancy indicates that the market may be underestimating the company’s execution capabilities and future performance.
Furthermore, strategic acquisitions, such as the recent Vazkepa deal, are expected to contribute to achieving the company’s ambitious revenue goals by 2030. The promising performance of key products like Enjaymo and Isturisa, along with a diverse revenue mix that reduces exposure to US pharmaceutical tariffs, further supports the positive outlook. These elements combined lead to an increased price target, reflecting the potential for earnings upgrades and multiple expansions as the company’s margin and top-line visibility improve.