DnB Markets - H. Lundbeck A/S (LUN) Lundbeck (Buy, TP: DKK320.00) - Waiting for guidance increases

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DnB Markets

Rune Majlund Dahl

EUR 92.44 For Business Accounts Only

Lundbeck (Buy, TP: DKK320.00) - Waiting for guidance increases

Q4 saw a sales and EBIT margin beat, reaching above the 2019 guidance for revenues and the high end of the EBIT range. The 2020 guidance of 2â€“6% organic growth signals a meaningful slowdown in sales momentum, making us believe the guidance is overly conservative even with the coronavirus risk. We will be looking for guidance increases in 2020. We reiterate our BUY with a new DKK320 (310) target price.

07/02/2020 19 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

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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: DKK320.00) - Waiting for guidance increases

Lundbeck (Buy, TP: DKK44.00) - New guidance structure

Lundbeck (Buy, TP: DKK44.00) - Focus on guidance and M&A

Lundbeck (Buy, TP: DKK44.00) - Focus on progressing the pipeline

Valmet (Buy, TP: EUR30.00) - Q1 on the weak side

Komplett (Hold, TP: NOK10.00) - Challenging market set to persist

XXL ASA (No_rec, TP: NOK) - Weak Q1, but better than forecast

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