It’s time to buy shares of this under-the-radar injectable delivery and beauty packaging maker with more than 30% upside potential, according to Jefferies. Analyst Daniel Rizzo upgraded shares of Aptargroup to a buy rating, saying that new pharmaceutical delivery products should drive 10% sales growth on a compound annual basis through 2027. ATR YTD mountain Aptargroup, YTD Given solid execution, ATR has risen ~30% YTD (vs the S & P 500’s +22%), but with a strong pipeline of new products such as delivery systems for GLP-1 drugs, for OTC Narcan, and for Neffy (epinephrine nasal spray), we estimate the Pharma segment will lead an 8.5% overall EBITDA CAGR through 2026 (consensus 6.7%),” he wrote. Along with the upgrade, Rizzo boosted his price target by 39% to $215 a share, representing 33% upside from Friday’s close. The firm also forecasts that the company can drive 7% to 11% pharmaceuticals sales growth over the next 10 years, given that 80% of its delivery systems are protected by intellectual property tools such as patents. Rizzo also noted that shares currently trade at a discount to other health-care packaging competitors. “As the pharma business grows, we expect the valuation to continue to move towards that of healthcare packaging competitors,” he wrote. “The stock is up ~30% YTD … but as new products help earnings accelerate, we expect multiple expansion to help support another ~30% increase.” A rebound in the beauty market should also occur in 2025 as China’s stimulus plan gets underway and credit easing continues in the U.S., he added.
