BTIG analyst Marie Thibault reiterated a Buy rating on Embecta Corporation (EMBC – Research Report) on May 9 and set a price target of $26.00.
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Marie Thibault’s rating is based on Embecta Corporation’s strong financial performance in the recent quarter, where the company exceeded expectations across key metrics such as revenue, adjusted gross margin, EBITDA margin, operating margin, and EPS. Despite a reduction in the full-year revenue outlook due to store closures by a significant U.S. retail pharmacy customer, the impact is largely offset by favorable currency movements.
Additionally, Embecta’s ongoing restructuring efforts, which are expected to yield substantial cost savings, and the company’s proactive debt reduction strategy contribute to a positive outlook. The company is also making progress in its brand transition activities, which are anticipated to be completed in the coming years. These factors, combined with potential market opportunities, underpin Thibault’s Buy rating and a price target of $26, based on a valuation of 9x the 12-24 month EPS estimate.