Repligen (RGEN) Stock Forecast & Price Target

Repligen experienced a robust performance in 4Q24, with total orders rising by 11% compared to the previous quarter and the prior year, reflecting strong demand across its product categories. The company anticipates a revenue growth rate of 9.9% for 2025, supported by approximately 20% year-over-year growth in revenues and orders from contract development and manufacturing organizations (CDMOs). Furthermore, Repligen's revenue across all product segments grew significantly, bolstered by disciplined cost control measures and margin expansion efforts, with American revenues increasing by mid-teens and Asian revenues (excluding China) surging over 40%.

Repligen is facing significant headwinds due to a slowdown in purchasing from small biotech companies, which has led to a reduction in visibility and order book, raising concerns about revenue stability. The company has issued multiple downward revisions to its guidance for 2024, reflecting increasing skepticism from investors regarding its ability to navigate ongoing challenges such as prolonged inventory destocking and macroeconomic pressures. Additionally, the transition of CEO Tony Hunt to Executive Chair introduces uncertainty in leadership, which could potentially affect valuation as the company has historically commanded a premium based on strong management performance.