MKB Investments broker has published an analytical review of Artgen Biotech (MOEX: ABIO) with a ‘Buy’ recommendation and a target price of RUB 165.9 per share.
The broker identifies several key growth opportunities for the company, including:
MKB Investments highlights the Artgen Biotech Group’s business model as a key advantage, with existing fast-growth subsidiaries generating increasing cash flow to fund R&D. In the coming years, the company plans to make large-scale investments in the development and production of first-in-class drugs for rare diseases. If these investments are successful, they will result in a substantial increase in the company’s stock price. Additionally, the company’s growth is supported by a rise in domestic demand, a lack of significant competitors, and government assistance.
Analysts have identified Artgen as a distinctive company with considerable growth potential, particularly in the event of blockbuster drugs entering the market. Additionally, they have highlighted its attractive debt burden and free cash flow growth as key factors. The phased IPO of the subsidiaries, while maintaining control, will significantly enahnce R&D financing opportunities and stimulate greater interest from retail and institutional investors in the biotechnology sector.
MKB Investments anticipates an increase in the value of Artgen Biotech shares up to 2030.
The report is available here.