Jefferies ups Recordati to 'buy' on rare disease momentum, M&A upside

Recordati Industria Chimica E Farmaceutica SpA

11/08/2025 09:38

** Jefferies upgrades Italian pharmaceutical group Recordati REC.MI to "buy" from "hold", citing stronger than expected growth prospects in rare diseases and benefits from recent M&A

** The brokerage says the market is "overly cautious on execution", with the stock pricing in a sales compound annual growth rate of -0.4% to +2.0%, well below a company guidance for 8.6% to 11% growth between 2025 and 2027

** Jefferies expects the Rare Diseases division, which it says is overlooked by the market, to "lead the charge" in driving top-line growth and improving margin visibility

** "M&A remains a key lever for upside," it adds, estimating that Recordati needs to invest around 450 million euros ($524.3 million) annually to meet its 2030 revenue targets

** Jefferies raises its price target by 12% to 61.5 euros, reflecting a focus on near-term delivery

** Recordati's shares rise 2.4% to 50.9 euros as of 0812 GMT

($1 = 0.8583 euros)

(Reporting by Laura Contemori)

((Laura.contemori@thomsonreuters.com))