DnB Markets - H. Lundbeck A/S (LUN) Lundbeck (Buy, TP: DKK300.00) - Guidance narrowed

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DnB Markets

Rune Majlund Dahl

EUR 88.68 For Business Accounts Only

Lundbeck (Buy, TP: DKK300.00) - Guidance narrowed

Lundbeck reported solid Q3 sales growth of c9% YOY in local currency, above our estimate and consensus. Core EBIT growth was also above our estimate and consensus, with a strong core EBIT margin of 27.6%, driven by good cost control. The 2020 revenue guidance was narrowed to DKK17.5bn–17.8bn (DKK17.4bn–18.0bn), while core EBIT was narrowed to DKK4.2bn–4.5bn (DKK3.9bn–4.3bn). We expect small positive core EPS consensus revisions of 1–2% for 2020e, and the shares to perform in line with the market today.

03/11/2020 10 EN

Underlying

H. Lundbeck A/S

H. Lundbeck develops, produces and markets drugs for treating diseases of the central nervous system. Products include antidepressants for the treatment of depression, panic disorder, and prevention of relapse/recurrence. Antipsychotic products for psychotic disorders; schizophrenia, anxiety, restlessness and insomnia; treatment of psychotic disorders; acute psychotic episodes, exacerbation of psychotic disorders. Co.'s products inclue Cipralex®/Lexapro® for the treatment of depression and anxiety; Ebixa® for the treatment of Alzheimer's disease; Azilect® for the treatment of Parkinson's disease; Xenazine®, Sabril®, Saphris® Sycrest®, Onfi, and other.

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DK0010287234 Nasdaq Nordic Copenhagen Denmark

Provider

DnB Markets

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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Analysts

Rune Majlund Dahl

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Lundbeck (Buy, TP: DKK300.00) - Guidance narrowed

Lundbeck (Buy, TP: DKK48.00) - Focus on Vyepti sales

Lundbeck (Buy, TP: DKK56.00) - PTSD decision getting closer

Lundbeck (Buy, TP: DKK56.00) - Solid Q4e; PTSD decision ahead

Airthings (No_rec, TP: NOK) - Recommendation and target price withdrawn

SpareBank 1 Helgeland (Hold, TP: NOK167.00) - Softer margin, but lower costs

Smartoptics (Buy, TP: NOK27.00) - We remain optimistic

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