Despite Attractive End Markets, Analyst Outlines Concerns For Repligen Stock

RBC Capital Markets has initiated coverage on Repligen Corporation RGEN with a Sector Perform rating and a price target of $190.
The analyst likes the company due to product differentiation in some of the fastest-growing areas of biopharma.
But RBC is hesitant towards the stock due to the 12.7x sales multiple, lack of operational earnings beats, declining gross margins, and low absolute R&D investment relative to larger companies in the space.
Related: Repligen Beefs Up Process Analytics Portfolio With DRS Daylight Solutions Pact.
Repligen is a pure play in the biopharma production sector, which has exploded over the last 2-3 years and remains the fastest-growing market in life sciences, tools & diagnostics, with first-mover advantage in many product areas.
But the larger players have taken notice – with M&A and capacity expansion investments, thus concerning the analyst about future growth prospects in what could become a very crowded market.
Price Action: RGEN shares are up 1.47% at $171.61 on the last check Wednesday.
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