Cifra Broker has published an analytical report on Artgen Biotech's (MOEX: ABIO) 2024 results, setting a target price of RUB 101 per share.
According to Cifra Broker analysts, Artgen Biotech demonstrated strong financial results in 2024. EBITDA rose by 18.7 % compared to 2023, with the margin increasing to 23 %. Net profit rose by 23.9 % to RUB 241 million. The company's debt burden continued to decline: as of the end of 2024, net debt amounted to RUB 65 million, and the net debt/EBITDA ratio decreased to comfortable 0.18x. A 50 % reduction in capital expenditures compared to 2023 contributed to record free cash flow.
Based on 2024 results, Cifra Broker analysts maintained a positive outlook for the shares of Artgen Biotech's parent company, noting that the company's stock is currently trading at a discount to its intrinsic value. Artgen Biotech continues to demonstrate sustainable growth amid challenging macroeconomic conditions, strengthening its financial stability and strategically expanding its R&D portfolio. The company reduced its debt load and optimized operating expenses, which allowed it to pass the peak of key interest rates while still achieving revenue and EBITDA growth and improving margins. In the second quarter of 2024, the company's shares came under pressure, demonstrating dynamics worse than the Moscow Exchange index, a pattern typical of biotech companies, which are generally perceived by market players as higher-risk investments. The main driver for the overall market remains the beginning of a key rate reduction cycle, which is expected to support Artgen Biotech's listing.
You can read the full report through the link