Piper double downgrades Organon to Underweight after CEO resignation

As previously reported, Piper Sandler analyst David Amsellem downgraded Organon (OGN) to Underweight from Overweight with a price target of $5, down from $18, calling the investigation that uncovered Nexplanon-related channel stuffing that led to the resignation of CEO Kevin Ali an “egregious breakdown in internal controls.” The firm believes that it will likely take “quite some time” for the board and new senior leadership to build “any modicum of credibility,” even if it becomes clear that there were no other instances of lapses in internal controls and no other instances of malfeasance, the analyst tells investors.