'Attractive risk-reward' — Syngene International shares gain as Macquarie sees 27% upside

Shares of Syngene International Ltd. gained on Wednesday, January 7, as brokerage firm Macquarie said it is positive on the stock.

The brokerage maintained its "outperform" rating on Syngene with a price target of ₹835 apiece, indicating an upside potential of nearly 28% from its previous close.

Macquarie believes that Syngene offers an attractive risk-reward, and expects fundamentals to improve while its valuations remain attractive.

The note further added that Syngene's contract research organisation (CRO) business growth is set to accelerate with a recovery in biotech funding, while the contract development organisation (CDO)

segment adds another growth driver.

Syngene's contract manufacturing organisation (CMO) business headwinds are baked into its guidance, while a new project could significantly boost the profitability via operating leverage, Macquarie's note said further.

Of the nine anlysts who have coverage on Syngene, five have a "buy" rating, while two each have "hold" and "sell" ratings.

Shares of Syngene International gained 3.6% to hit an intraday high of ₹678.95 apiece. The stock was up 1.3% at ₹664.2 apiece around 11.55 am. It has declined 24.3% in the past year.

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