Corporate Logo(source: celltrion.com)
On September 4, Meritz Securities issued a report stating that Celltrion (068270) remains undervalued and has medium- to long-term growth potential to drive its share price higher. The brokerage maintained a “Buy” rating with a target price of 250,000 won.
As of 10:35 a.m., Celltrion shares were trading at 170,300 won down 0.70% from the previous session.
“Celltrion has remained at the lower end of its valuation range at an EV/EBITDA multiple of 20x but successfully rebounded on expectations for second-quarter earnings,” Meritz said. “The easing of uncertainties surrounding drug tariffs and pricing policies, along with a recovery in earnings momentum, is expected to drive a multiple re-rating.”
The company is currently facing risks related to U.S. pharmaceutical tariffs but is pursuing the acquisition of a local drug substance (DS) contract development and manufacturing organization (CDMO) plant. Factoring in the expected signing of a definitive agreement in October and the subsequent U.S. government approval process, the deal could be completed within the year. Once finalized, Celltrion would be able to produce its key products locally in the U.S.
Sales of high-margin autoimmune treatments such as Remsima SC, Yuflyma, and Steqima have recently been increasing. The company has also reportedly secured two years’ worth of inventory in the U.S., which could offset costs and delays until the CDMO plant is fully operational.
Meritz noted, “Celltrion has secured two years of inventory in the U.S. and announced plans to acquire a U.S.-based DS CDMO plant. With exclusive negotiation rights, a definitive contract is expected in October, and about 50% of existing volume is projected to be recognized as revenue after the acquisition.” The brokerage forecast Celltrion’s 2025 earnings at 4.2274 trillion won in revenue and 1.1236 trillion won in operating profit, up 18.8% and 128.3% year-on-year, respectively.
Analyst Kim Jun-young added, “Although the initial acquisition of a U.S. DS plant and related facility investments may pose risks to operating margin growth, we believe these risks will be mitigated by strong sales growth of new products such as Remsima SC, Yuflyma, and Steqima, coupled with operating leverage.”
*[KOSPI] Celltrion(068270) engages in the development and production of various therapeutic proteins, including anticancer drugs, based on biotechnology and animal cell mass culture technology. Market capitalization is 39.583 trillion won (as of September 3, 2025, closing price).
Corporate Logo(source: celltrion.com)
On September 4, Meritz Securities issued a report stating that Celltrion (068270) remains undervalued and has medium- to long-term growth potential to drive its share price higher. The brokerage maintained a “Buy” rating with a target price of 250,000 won.
As of 10:35 a.m., Celltrion shares were trading at 170,300 won down 0.70% from the previous session.
“Celltrion has remained at the lower end of its valuation range at an EV/EBITDA multiple of 20x but successfully rebounded on expectations for second-quarter earnings,” Meritz said. “The easing of uncertainties surrounding drug tariffs and pricing policies, along with a recovery in earnings momentum, is expected to drive a multiple re-rating.”
The company is currently facing risks related to U.S. pharmaceutical tariffs but is pursuing the acquisition of a local drug substance (DS) contract development and manufacturing organization (CDMO) plant. Factoring in the expected signing of a definitive agreement in October and the subsequent U.S. government approval process, the deal could be completed within the year. Once finalized, Celltrion would be able to produce its key products locally in the U.S.
Sales of high-margin autoimmune treatments such as Remsima SC, Yuflyma, and Steqima have recently been increasing. The company has also reportedly secured two years’ worth of inventory in the U.S., which could offset costs and delays until the CDMO plant is fully operational.
Meritz noted, “Celltrion has secured two years of inventory in the U.S. and announced plans to acquire a U.S.-based DS CDMO plant. With exclusive negotiation rights, a definitive contract is expected in October, and about 50% of existing volume is projected to be recognized as revenue after the acquisition.” The brokerage forecast Celltrion’s 2025 earnings at 4.2274 trillion won in revenue and 1.1236 trillion won in operating profit, up 18.8% and 128.3% year-on-year, respectively.
Analyst Kim Jun-young added, “Although the initial acquisition of a U.S. DS plant and related facility investments may pose risks to operating margin growth, we believe these risks will be mitigated by strong sales growth of new products such as Remsima SC, Yuflyma, and Steqima, coupled with operating leverage.”
*[KOSPI] Celltrion(068270) engages in the development and production of various therapeutic proteins, including anticancer drugs, based on biotechnology and animal cell mass culture technology. Market capitalization is 39.583 trillion won (as of September 3, 2025, closing price).