On Friday, RBC Capital Markets adjusted its stance on PolyPeptide Group AG (PPGN:SW), upgrading the stock from Sector Perform to Outperform. The firm has also increased its price target for the company's shares to CHF 45.00, up from the previous target of CHF 33.50.
The upgrade by RBC Capital comes as the firm foresees a potential tripling in PolyPeptide's share price. This optimistic outlook is supported by the company's new guidance for the year 2028, which has provided a clearer picture of the company's growth trajectory. RBC Capital believes that the current market is undervaluing PolyPeptide, with an implied discount rate of 50% that the firm considers excessively high in relation to the actual execution risk.
The analyst noted that while it may take over 15 months before the company's execution on ramping up commercial sales is demonstrated, the risk-reward profile for PolyPeptide is expected to grow more attractive in the coming months. This anticipation is linked to the opening of a new site and the forthcoming guidance for the year 2025.
RBC Capital's upgrade is based on the view that the market will begin to recognize the company's potential as these developments unfold. The firm's increased price target reflects a confidence in PolyPeptide's ability to execute its strategic plans and achieve the outlined growth objectives.
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