BNP Paribas starts Recordati at 'outperform' on rare disease growth potential

Recordati Industria Chimica E Farmaceutica SpA

03/03/2026 08:18

** BNP Paribas initiates coverage of Italian drugmaker Recordati RECI.MI with an "outperform" rating, citing an undervalued rare disease business seen at 58% of 2030 sales, and saying concerns over a private equity sell-down are "massively overdone"

** The brokerage sets a 56 euro price target, implying 16% upside, calling it a "conservative floor" that provides a safety net against a potential sell-down by main shareholder CVC

** BNP says no value is currently attributed to Isturisa's recent U.S. label expansion into endogenous Cushing's, which it sees as an incremental opportunity worth more than 800 million euros

** ** It views Recordati's peak sales assumptions for medicine Isturisa, its treatment for Cushing's syndrome, as conservative, citing physician preference over rival drug Korlym and regulatory setbacks for competitor relacorilant

** It argues the stock's premium valuation versus specialty pharma peers is justified by stronger medium-term growth, forecasting 9% revenue and 12% earnings per share compound annual growth rate (EPS CAGR) through 2030

**  Out of 11 analysts that cover Recordati, six rate the stock "strong buy" or "buy, and five rate the stock "hold" - LSEG data

(Reporting by Laura Contemori)

((Laura.contemori@thomsonreuters.com))