Syngene share price continued to hit new 52-week highs after the company’s Q4 earnings beat estimates. ICICI Direct analysts believe that the company will maintain its strong momentum and growth, causing the stock to rise further.

The Syngene Analyst: The Siddhant Khandekar– led analyst team at ICICI Direct upgraded the stock’s rating from ‘hold’ to ‘buy’ with a price target of ₹740.

The Syngene Thesis: The brokerage firm said that the company’s sales were in line with estimates and its margins beat the firm’s estimates. The company’s revenues grew 31% year-over-year to ₹994.4 crore.

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EBITDA for the March quarter stood at ₹318.3 crore up 27.2% YoY. Net profits for the period jumped 20.9% YoY to ₹178.7 crore. Earnings per share for the quarter stood at ₹4.5.

The firm in its research note, also highlighted some key triggers for future stock performance. One of them was the multiple-year extension of Amgen, BMS, and Baxter contracts which the firm opined makes the company “well poised to capitalise on growing opportunities globally.” Another one would be the company securing timely regulatory approvals for its Mangalore facility.

The brokerage firm said that “Syngene remains a compelling play in the Contract Research Organisation (CRO) space with elite client profile and is well positioned for sustainable growth”.

Price Action: Syngene share price was up 3.22% to trade at ₹670.75 in the early hours of trading on Friday.

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