Novozymes (Buy, TP: DKK350.00) - Awaiting final merger approval
Q3 organic sales growth was c8% YOY (we forecast 6.7%, consensus 5.8%), driven by Bioenergy and Household Care, and the EBIT margin b.s.i. was 26.6% (we forecast 25.2%, consensus 25.3%). The 2023 guidance remains 4–6% organic sales growth and a 25–26% EBIT margin b.s.i., but the FCF outlook was cut to DKK1.8bn–2.2bn. Divisionally, Bioenergy’s sales growth indication was raised, while Grain Tech Processing’s was lowered. We still expect approval of the merger by end-2023. We reiterate our BUY and DKK350 target price.Novozymes is a biotechnology company based in Denmark. Co.'s business operations are centered on the development of industrial enzymes, microorganisms, and biopharmaceutical ingredients. Co. provides business-to-business biological solutions used in the production of numerous products such as biofuel, detergents, feed, and crops. Co.'s business operations are organized along two segments: the Enzyme Business which is divided into four areas, providing industrial enzymes for household care, food & beverages, bioenergy, and feed & other technical; and the BioBusiness which is home to Co.'s microorganisms and biopharmaceutical ingredients.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.