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LeoPatrizi
Wolfe Research upgraded Qiagen (NYSE:QGEN) to Outperform from Peer Perform on Thursday, noting a valuation disconnect between the Dutch life sciences company and its peers.
However, analyst Doug Schenkel said that the stock is trading at over a 20% discount to peers on a P/E and EBITDA basis and added, “We believe there is little downside risk and recommend purchase.”
His rating change came after QGEN held its Capital Markets Day last week, with its highlights being a target to achieve ~7% compound annual sales growth and at least 31% of operating income margin on a forex-adjusted basis in 2028.
Given the targets and multiple other positives, including the company’s heavy reliance on recurring revenue (~85%), Schenkel argued that Qiagen (QGEN) is poised to outperform its peers.
“We believe QGEN is set up to deliver ~6% organic growth and >30% operating margin in the next 5 years,” the analyst wrote, with a $50 price target on the stock.