Ipsen SA (IPN: FP) (OTC: IPSEF), a global biopharmaceutical company, has received an upgraded stock rating from RBC Capital. The firm raised its rating from Sector Perform to Outperform, with the price target also increasing to EUR 140.00 from the previous EUR 129.00.
The upgrade came after RBC Capital reviewed Ipsen's financial outlook following the U.S. approval of the company's drug Iqirvo for Primary Biliary Cholangitis (PBC).
The analyst from RBC Capital noted that they now expect the peak sales for Iqirvo to reach EUR 540 million, a significant jump from the initial EUR 300 million estimate. This upward revision is anticipated to boost Ipsen's earnings per share (EPS) forecasts by up to 9%.
The analyst's evaluation suggests that Ipsen's shares are currently undervalued, with a price-to-earnings (PE) ratio of 11.3x. This valuation is seen as attractive given the company's potential for a 9% compound EPS growth over the medium term.
The revised discounted cash flow (DCF) analysis has led to the higher price target, which suggests a potential upside of over 30% for Ipsen's stock.
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