Narrow-Moat Ipsen Reports Solid Q3 Results; FVE EUR 120, Shares Undervalued

Ipsen reported solid third-quarter results in line with our expectations. Total sales year to date grew 15.5% on a reported basis, which was largely driven by strong performance from Dysport, Decapeptyl, Cabometyx, and Onivyde. We maintain our fair value estimate of EUR 120 per share and view the stock as undervalued, currently trading in 4-star territory at 17% below our fair value estimate. We maintain Ipsen’s narrow economic moat rating based on its strong intangible assets, a medium uncertainty rating, and a negative moat trend.