Stephens analyst Jacob Johnson initiated coverage of Recro Pharma with an Overweight rating and $14 price target. He thinks the company's CDMO assets are currently underappreciated "despite world class customers, end-to-end capabilities, industry-leading margins, and strong revenue growth," said Johnson, who notes that the company has been evaluating splitting the businesses into two separate companies, which would unlock the value of the CDMO business. His price target ascribes zero value to the therapeutics business, which he views as a "free option," Johnson added.