Repligen Earnings: Exceeds Expectations, Recovery Well Under Way

Narrow-moat Repligen's third-quarter results exceeded our expectations. Full-year guidance was in line with previous communications, albeit with narrowed ranges, and we think the company's return to normalized growth rates of high single digits or low teens is well under way. The company provided restated financials for the past six quarters to correct for the timing of revenue recognition of a $17.3 million contract cancellation payment received in April 2023. We view the impact of these restatements as immaterial to our prior analysis of the company, and it does not affect our outlook for it going forward. We maintain our fair value estimate of $180 per share and view the stock as modestly undervalued at current market prices.