RBC optimistic on Societal CDMO's growth prospects; starts with 'outperform'

Societal CDMO

24/03/2023 14:55

** Shares of contract drug manufacturer Societal CDMO Inc
 SCTL.O  up 3.6% at $1.14
    ** RBC starts coverage with "outperform" rating and $2 PT
    ** Says co now supports high single-digit-plus long-term rev
growth outlook and EBITDA margins of more than 20% vs RBC's
prior est. of ~16% for 2023
    ** RBC, however, adds current challenges in biotech funding
environment has potential to temporarily slow SCTL's pace in
adding/advancing new development clients 
    ** In 2022, co's stock fell 12.9% 

 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))