Organon & Co (NYSE:OGN), which has recently spun-off from Merck & Co., Inc. (NYSE:MRK), has “inherited a global business across three segments,” namely Women’s Health, Legacy and Biosimilars brands, according to BofA Securities.
The Organon Analyst: Jason Gerberry initiated coverage of Organon with a Buy rating and a price target of $43.
The Organon Thesis: The company has a strong management team, with experience in working in the Big Pharma segment, Gerberry said in the initiation note.
The analyst mentioned three key reasons for recommending Organon:
- “We believe Nexplanon’s elective procedure-driven business is positioned for rebound as COVID-19 dissipates aided by numerous drivers including LARC expansion,” he wrote.
- The current valuation of the stock represents “an attractive entry point for shares to re-rate on validation of mgmt’s growth outlook,” Gerberry noted.
- Few competitors in women’s health offers “an opportunity for OGN to aggregate pipeline assets and drive operating leverage,” he added.
OGN Price Action: Shares of Organon had risen by 3.28% to $34.99 at the time of publication Wednesday.
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