ALK-Abello (Buy, TP: DKK970.00) - A good buying opportunity
Admittedly, ALK’s announcement last week that it was investing an additional cDKK1bn in the US came as a surprise. However, with the ensuing sell-off, the equity issue out of the way and the investment case intact, we see a good buying opportunity. We stress we believe the move boosts the likelihood of ALK unlocking significant long-term value potential in the US, but also that it has the option to pull the plug on the increased investment at any time. We have cut our target price to DKK970 (1,000) following the equity issue, but reiterate BUY.Alk-Abello is engaged in the development and marketing of pharmaceutical products for the treatment, prevention and diagnosis of allergies. Co.'s product portfolio comprises allergy vaccines, emergency treatments and allergy diagnostics products. Co.'s allergy vaccines product offering comprises tablet vaccines, sublingual vaccines and subcutaneous vaccines. Co.'s emergency treatments product offering comprises products for the management of anaphylaxis. Co.'s allergy diagnostics product offering comprises allergen extracts for allergy testing, such as skin-prick tests.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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