DBS analyst Nico Chen maintained a Buy rating on AptarGroup (ATR – Research Report) today and set a price target of $175.00.
Nico Chen has given his Buy rating due to a combination of factors including Aptar Pharma’s significant contribution to AptarGroup’s overall performance. Aptar Pharma is a key driver, accounting for 46% of sales and 73% of EBITDA, and it benefits from a strong customer retention due to its specialized drug delivery devices. The unit’s higher EBITDA margin compared to industry peers further underscores its profitability.
Additionally, AptarGroup is well-positioned to capitalize on the growing biologics market by expanding its elastomer production capacity in the US and France. The increasing focus on non-invasive drug delivery methods, such as nasal sprays, also presents a promising opportunity for Aptar, given its leadership in this technology. Despite potential challenges in the Beauty segment due to low consumer spending, the company’s robust product technology and strategic investments support the positive outlook, justifying the Buy rating with a target price of USD 175.
Chen covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Wuxi Biologics (Cayman), and AptarGroup. According to TipRanks, Chen has an average return of 3.6% and a 54.05% success rate on recommended stocks.
In another report released on February 10, Robert W. Baird also maintained a Buy rating on the stock with a $160.00 price target.
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