Lonza - Downgrade to Sell (TP CHF490 [500], 13 pgs)
Whilst investor expectations already account for a potential profit warning at H1 results on Friday, we believe that a cut to consensus 2024 EBITDA forecasts (currently 20% EBITDA growth), will be the driver of share price downside for Lonza as investors de-rate the shares to reflect a slower (but still attractive) growth profile. We show that the risks are skewed to the downside for 2023 on revenues and the Cell & Gene division pressures will play a big factor in how far numbers may fall. The CMD in Q4 will allow Lonza to reset mid-term guidance. We also expect overcapacity to hit the industry from H224 but Lonza should be relatively insulated. PT now CHF490For access to the full note, please contact Naresh Chouhan ( )
Lonza supplies services and products that range from active pharmaceutical ingredients and stem-cell therapies to drinking water sanitizers, from vitamin B compounds and organic personal care ingredients to agricultural products, and from industrial preservatives to microbial control solutions. Co. operates in two segments: Lonza Pharma & Biotech, which clusters all of Co.'s offerings for pharmaceutical markets, focuses on providing custom development, custom manufacturing, cell therapy, viral therapeutics and bioscience solutions; and Lonza Specialty Ingredients, which includes offerings in its consumer care, agro ingredients, industrial solutions, wood protection and water treatment.
Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.
New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:
- Pan European Telecom Services and Cable
- US Telecoms, Cable, Satellite and Towers
- Global Emerging Market Telecoms
- Japan Telecoms
- Asian Internet
- Pan European Healthcare
- Global healthcare thematic research
We provide debt research on:
- Pan European Telecom Services and Cable
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.