Repligen Earnings: Encouraging Guidance Supports Attractive Growth Story

Narrow-moat Repligen’s fourth-quarter earnings were in line with our expectations, and guidance for next year suggests an encouraging return to growth and margin expansion. Although we had hoped for slightly more adjusted margin improvement, the company’s financial metrics are moving in the right direction, and we think it is well on its way to returning to normalized double-digit revenue growth and steadily improving profitability. We maintain our fair value estimate of $180 per share.