Buy Syngene International; target of Rs 710: ICICI Direct
ICICI Direct is bullish on Syngene International has recommended buy rating on the stock with a target price of Rs 710 in its research report dated October 22, 2021.
October 22, 2021 / 04:46 PM IST
ICICI Direct's research report on Syngene International
Syngene is a contract research, development and manufacturing organisation catering mainly to global innovator pharma\chemical companies offering integrated scientific services from early discovery to commercial supply. Syngene serves these players, which outsource some or substantial part of their business in the product development life cycle and operates via full time equipment (FTE) and fee for services (FFS) models Revenue breakup: Discovery services (35%): FTE engagements with high renewability; Dedicated services (32%): Long-term strategic alliances that last usually five years or more, Development and manufacturing (33%): FFS engagements which increase in volume/scale over time
Due to the structural story of outsourcing besides significant visibility capex and client stickiness, we remain positive and retain our BUY rating We value Syngene at Rs 710 i.e. 40x FY24E EPS
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