Baader upgrades Polypeptide as share decline opens 'good entry point'

PolyPeptide AG

30/09/2022 08:49

** Baader Helvea raises Polypeptide Group  PPGN.S  to "add"
from "reduce" saying the Swiss group, which makes peptides for
pharma and biotech companies, offers a good entry point after a
steep fall in share price
    ** It cuts target price by 14% to CHF 30 vs CHF 26.68 at
Thursday's close, down nearly 60% over the last three months
    ** Baader says the market has digested the disappointments
of the last 2-3 quarters, opening a cheap entry for long-term
oriented investors to play "the attractive peptide and
oligonucleotide CDMO growth"
    ** The launch of Eli Lilly's  LLY  Tirzepatide drug Mounjaro
supports medium-term growth expectations, the broker says, even
if Polypeptide and rival Bachem  BANB.S  can't directly confirm
they manufacture Tirzepatide for the U.S. drugmaker
    ** Baader notes PolyPeptide is an "underdog" against
industry leader Bachem, as its smaller size and less advanced
stage in the oligonucleotide market results in slower and lower
margin expansion
    ** Out of six analysts covering the stock, one rates it
"buy", four "hold", and one "sell"
 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))