Analysts at Liberum lowered their target price on pharmaceutical services and products group Clinigen from 886.0p to 800.0p on Friday but stated risks still appeared to be “skewed to the upside”.
Liberum said it had updated Clinigen model in order to reflect recent results and the group’s new reporting structure.
The analysts said Clinigen’s owned products performance had disappointed and drove “mid-single-digit downgrades” to sales and underlying earnings estimates.
However, Liberum said sales should recover in 2022 and will underpin mid-single-digit compound underlying earnings growth through to 2026. It also highlighted that excludes “upside optionality” for Clinigen’s Proleukin.
“Irrespective of the Proleukin optionality our DCF of £8.0 per share (down from £8.86) offers attractive 33% upside. We retain our ‘buy’ recommendation,” said Liberum.
