It's time to buy shares of this under-the-radar injectable delivery and beauty packaging maker with more than 30% upside potential, according to Jefferies.
Analyst Daniel Rizzo upgraded shares of Aptargroup to a buy rating, saying that new pharmaceutical delivery products should drive 10% sales growth on a compound annual basis through 2027.
Along with the upgrade, Rizzo boosted his price target by 39% to $215 a share, representing 33% upside from Friday's close.
The firm also forecasts that the company can drive 7% to 11% pharmaceuticals sales growth over the next 10 years, given that 80% of its delivery systems are protected by intellectual property tools such as patents.
"The stock is up ~30% YTD ... but as new products help earnings accelerate, we expect multiple expansion to help support another ~30% increase."
Persons:
Daniel Rizzo, Rizzo
Organizations:
Jefferies, OTC Narcan, pharma
Locations:
Aptargroup, U.S