Shares of Recordati, the Italian drugmaker, saw a boost following an upgrade from Kepler Cheuvreux, moving from "hold" to "buy." The firm cited attractive valuation levels and a clearer outlook, particularly ahead of the company's full-year results. Kepler raised the target price to €57.50, suggesting a potential 22.9% increase from the current trading price.

The upgrade comes as Recordati prepares to release its full-year 2025 results on February 17th. Analysts anticipate results at the lower end of the company's guidance. The firm's analysts point to the stock trading at a discount compared to its peers. Recordati's free cash flow yields are in the high single digits.

Kepler Cheuvreux kept its 2025 earnings estimates relatively unchanged, but slightly reduced its 2026 forecast to account for increased spending on Isturisa, Recordati's treatment for Cushing's disease. This follows the FDA's decision not to approve a competing drug. With a 47% stake, CVC Capital Partners remains a factor.

Investors should watch Recordati's upcoming earnings report for more clarity. The firm anticipates net debt to fall, and analysts see the risk-reward profile shifting favorably. The market will be keen to see if Isturisa can continue to gain market share due to the recent regulatory decision.