Cifra Broker has published an analytical report on the Artgen Biotech’s performance (MOEX: ABIO) for 9 months of 2024. Target price: RUB 130 per share.
Cifra Broker analysts noted Artgen Biotech’s good financial performance for the first 9 months of 2024. In Q3, revenue according to RAS increased by a record 318%. The company’s net profit increased by 220%, largely due to the growing flow of dividends from Artgen Biotech’s subsidiaries. The company’s net debt decreased despite the active phase of the investment cycle. Its upgraded credit rating of BBB- also indicates the company’s financial stability.
According to analysts, Artgen Biotech, Genetico, and Gemabank demonstrate positive results this year, especially considering the difficult economic situation and unfavorable monetary factors. Companies proved to be well prepared for a long cycle of high rates, did not increase their debt burden, and continue to show strong revenue growth.
Based on the results of 9 months, Cifra Broker analysts maintained a positive outlook on the shares of the parent company, Artgen Biotech, and believe they are currently trading at a discount to its intrinsic value. Artgen Biotech’s developments remain in high demand, and R&D investments are already yielding returns thanks to successful finished products. The high key rate and the hawkish stance of the Bank of Russia did not allow analysts to increase the fair valuation of Artgen Biotech’s shares at this stage, so the target price remains at RUB 130 per share.