An analyst initiated coverage of Emergent BioSolutions (EBS 11.85%) stock as the last trading week of 2024 kicked off, and investors reacted quite positively to the move. On the news, they piled into the stock, ultimately sending it to a nearly 12% gain on the day. That contrasted very favorably to the stumbling S&P 500 (^GSPC -1.07%), which ended Monday down 1%.
More than an emerging company
Emergent, which benefits from a wider-than-average range of revenue-generating activities, is now being tracked by H.C. Wainwright’s Raghuram Selvaraju. He launched his coverage with a buy recommendation at a price target of $15 per share. That is 62% higher than the stock’s current level, even after that almost 12% increase.
According to reports, Selvaraju believes Emergent is well diversified in its offerings, and it is active in several medical segments that have fine potential for growth. He feels the company’s Narcan opioid reversal spray will continue to experience heavy demand due to the continuing epidemic of such drugs in the U.S.
The analyst also waxed bullish about the company’s vaccines business, pointing out that it has jabs for monkeypox and smallpox. The former has been in the news lately as a possible global healthcare threat.
A stock to consider as we move into 2025
News of Sevaraju’s fresh and positive take on Emergent puts a nice cap on the company’s 2024. Heading into next year, with various illnesses that might become the next pandemic, it’s well positioned to be a frontline soldier in the next worrying healthcare emergency.
Even if that doesn’t occur, the analyst’s view that Emergent’s business is well (and effectively) diversified is accurate. This alone makes the stock worthy of consideration as a buy.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Emergent BioSolutions. The Motley Fool has a disclosure policy.
