Novonesis - Initiation of coverage - All eyes on execution
We initiate coverage of the merged entity (Novozymes and Chr Hansen) with a HOLD and DKK440 target price. We view the 2024 guidance as conservative (5–7% organic growth, c35% adj. EBITDA margin), with the organic growth guidance midpoint below the targeted 6–8% CAGR for 2023–2025 and the adj. EBITDA margin guidance c2% below the 2025 target. We note the 2025 guidance is unchanged, and find the low end of the organic growth target more realistic. We expect investor focus ahead of the CMD on 18 June to be on execution.
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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