The brokerage maintained its “outperform” rating on Syngene with a price target of ₹835 apiece, indicating an upside potential of nearly 28% from its previous close.
Macquarie believes that Syngene offers an attractive risk-reward, and expects fundamentals to improve while its valuations remain attractive.
The note further added that Syngene’s contract research organisation (CRO) business growth is set to accelerate with a recovery in biotech funding, while the contract development organisation (CDO) segment adds another growth driver.
Syngene’s contract manufacturing organisation (CMO) business headwinds are baked into its guidance, while a new project could significantly boost the profitability via operating leverage, Macquarie’s note said further.
Of the nine anlysts who have coverage on Syngene, five have a “buy” rating, while two each have “hold” and “sell” ratings.
Shares of Syngene International gained 3.6% to hit an intraday high of ₹678.95 apiece. The stock was up 1.3% at ₹664.2 apiece around 11.55 am. It has declined 24.3% in the past year.
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