What Happened?
Shares of biopharma manufacturing company Repligen Corporation (NASDAQ: RGEN) fell 3.5% in the afternoon session after Jefferies lowered its price target on the stock.
Analyst Matthew Stanton from Jefferies reaffirmed a "Hold" rating on the life sciences company but cut the 12-month price target to $135 from $145. While the analyst's rating on the stock remains unchanged, the reduction in the price target suggests a more cautious outlook on the company's future valuation. This adjustment by a Wall Street firm often prompts investors to reassess their own expectations, leading to selling pressure on the shares.
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What Is The Market Telling Us
Repligen’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock gained 4.9% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium.
Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Repligen is down 19.1% since the beginning of the year, and at $115.75 per share, it is trading 33.6% below its 52-week high of $174.24 from January 2025. Investors who bought $1,000 worth of Repligen’s shares 5 years ago would now be looking at an investment worth $773.32.
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