Recipharm (Hold, TP: SEK90.00) - Lowered guidance – lowered trust
Recipharm reported weaker than expected earnings for Q3, on the back of which the shares took a serious beating (down c17% on the day). Among other things, the company flagged that FY 2017 guidance will be hard to reach, and, in our view, the decision to close down a few facilities in Sweden puts the longer-term story into question. We reiterate our HOLD recommendation but have lowered our target price to SEK90 (SEK110) on the back of our earnings revisions.Recipharm AB and its subsidiaries is engaged as a manufacture pharmaceuticals and perform contract development services for pharmaceutical companies. Co.'s segment are Manufacturing Solids & Others, Manufacturing Steriles, Development & Technology and Other. The manufacturing segments consist of contract manufacturing of pharmaceuticals. The Development & Technology segment provides services to pharmaceutical companies in the drug development phase for new pharmaceuticals.
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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