Cheplapharm Arzneimittel : Successful M&A strategy rollout and potential IPO not fully priced in. We raise our recommendation to 'Buy'

Since the start of 2021, Cheplapharm has been quiet on the M&A front, focusing on digesting the many targets acquired last year. After delivering a strong set of Q4 2020 and Q1 2021 results, the company will likely jump back onto the M&A trail. Accordingly, the recent € 95m drug portfolio purchased from Astellas could be a precursor to fresh deals further out. As net leverage currently stands at the upper end of the long-term guidance range, the IPO looks increasingly attractive ...