HSBC initiated coverage on Repligen (NASDAQ:RGEN) with a Buy rating and a price target of $150.00 on Wednesday.
The investment bank views Repligen as offering "pureplay exposure to bioprocessing," which it describes as one of the highest growth areas in the sector. HSBC estimates Repligen will achieve organic revenue growth in the low to mid-teens over the next three years.
This projected growth rate would outpace the broader bioprocessing market by approximately 5% and exceed the overall life sciences market by 5-8%, according to HSBC’s analysis. The firm attributes Repligen’s competitive advantage to its innovation speed, portfolio breadth in bioprocessing, and agility.
HSBC also notes that a "local-for-local approach" amid tariffs and regulatory barriers creates tailwinds for new equipment and consumable orders. This positioning helps Repligen maintain the "right balance to outpace its larger peers."
The firm identified three key issues facing Repligen: sustainability of recent order growth momentum, potential constraints from an elongated biotech funding cycle, and competitive positioning against industry giants such as Thermo Fisher and Danaher.
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