Cohance Lifescience shares will be in focus on Aug. 25, as global brokerage Jefferies initiated coverage on the pharma stock with a 'Buy' rating at a target of Rs 1,150, citing the company's differentiated technology-led CRDMO platform and strong positioning in the fast-growing Antibody Drug Conjugate segment.
The brokergae noted that Cohance is well-placed to benefit from ADC industry tailwinds, with a strong pipeline and multiple growth levers driving 20% sales compound annual growth rate and 26% Ebitda Earnings Before Income, Tax, Depreciation and Amortisation CAGR over FY25-28E.
Jefferies further said that Cohance is a payload supplier for most Big Pharma ADCs utilising CPT-based warheads. It is already the exclusive supplier for two commercial "blockbuster ADCs". In the small molecule segment, the pipeline includes "three blockbuster drugs from Big Pharma and is rapidly expanding," it said.
Jefferies believes the company is well-placed to benefit from industry tailwinds. “In our view, it is the best ADC play in the Indian listed universe,” the note said, adding that Cohance offers “the highest growth rate among our CRDMO coverage and is the only company expected to deliver over 25% EBITDA growth during FY25–28E.”
Cohance's pipeline spans both ADC and small molecule segments, with Jefferies estimating that its commercial and pipeline molecules could generate $26 billion in sales by 2030.
Jefferies also pointed to multiple growth levers beyond base recovery, including integrated ADC offerings, new customer additions, Big Pharma-led diversification to India, and cross-selling opportunities. “Cohance has several growth drivers that can support sustained high growth,” the note said.
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