Benzinga | Sep 1, 2021 11:04AM EDT

3 Reasons To Buy Organon Stock, Says BofA Analyst

Organon & Co (NYSE:OGN), which has recently spun-off from Merck & Co., Inc. (NYSE:MRK), has "inherited a global business across three segments," namely Women's Health, Legacy and Biosimilars brands, according to BofA Securities.

The Organon Analyst: Jason Gerberry initiated coverage of Organon with a Buy rating and a price target of $43.

The Organon Thesis: The company has a strong management team, with experience in working in the Big Pharma segment, Gerberry said in the initiation note.

The analyst mentioned three key reasons for recommending Organon:

* "We believe Nexplanon's elective procedure-driven business is positioned for rebound as COVID-19 dissipates aided by numerous drivers including LARC expansion," he wrote.

* The current valuation of the stock represents "an attractive entry point for shares to re-rate on validation of mgmt's growth outlook," Gerberry noted.

* Few competitors in women's health offers "an opportunity for OGN to aggregate pipeline assets and drive operating leverage," he added.

OGN Price Action: Shares of Organon had risen by 3.28% to $34.99 at the time of publication Wednesday.

Photo: Myriam Zilles via Unsplash