Organon initiated at Raymond James with Outperform rating, $33 price target

Raymond James analyst Elliot Wilbur initiated coverage of Organon with an Outperform rating and $33 price target. The recent 20%-plus decline post its 4Q22 and 2023 outlook creates an opportunistic entry point to participate in a durable long-term growth story driven by a leadership position within the $40.0B women’s health category, the analyst tells investors in a research note. The firm expects Organon to ascend the value chain within the biosimilars arena, and its growth pillars should enable the company to generate low-to-mid single digit revenue growth over the next decade, more than offsetting modest erosion from Organon’s Established Brands portfolio.