PARIS - Following Ipsen's recent Capital Markets Day, UBS has reiterated its Buy rating on the French pharmaceutical company, setting a price target of €150. This target suggests a significant 44% potential upside from the current level.
Ipsen's ambitious financial goals were highlighted during the event, where the company outlined its strategy to achieve an average annual sales growth rate exceeding 7% through to 2027, with an expected operational margin from activities of at least 32%.
Ipsen's robust portfolio, which spans oncology, rare diseases, and aesthetic health sectors, is poised for growth with several major product launches on the horizon. Among these are Onivyde and Bylvay, as well as elafibranor and Sohonos. The company is not only focused on bringing these products to market but is also actively investing in research and development to further expand its offerings.
InvestingPro Insights
Ipsen's recent Capital Markets Day has certainly put the spotlight on its future growth prospects, and market data from InvestingPro reinforces the positive outlook shared by UBS. With a reported market capitalization of $9.20 billion and a healthy P/E ratio of 18.94, which adjusts down to 12.95 when considering the last twelve months as of Q2 2023, Ipsen appears to be valued attractively in the market.
InvestingPro Tips indicate that Ipsen has a high earnings quality, with free cash flow that exceeds net income, suggesting that the company is generating more cash than what is being reported as net income, a positive sign for investors. Additionally, the company yields a high return on invested capital, which is a testament to its efficient use of capital to generate profits.
The revenue growth of Ipsen has been solid, with an 11.24% increase over the last twelve months as of Q2 2023, and its gross profit margin stands impressively at 83.07%. These figures demonstrate the company's ability to not only increase sales but to do so profitably.
For investors looking for stability, an InvestingPro Tip notes that Ipsen has maintained dividend payments for 18 consecutive years, which, coupled with a dividend yield of 1.15%, provides a steady income stream. This is particularly noteworthy for those who value consistent returns in their investment portfolio.
In light of these insights, the InvestingPro platform, which is currently offering a special Cyber Monday sale with discounts of up to 60%, could be an invaluable tool for investors interested in Ipsen. For an even better deal, use the coupon code sfy23 to get an additional 10% off a 2-year InvestingPro+ subscription. With numerous additional tips available on InvestingPro, including 12 more for Ipsen alone, investors can gain a comprehensive understanding of the company's financial health and growth potential.
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