Lonza - Reset Largely Done, What Multiple? (SELL, TP CHF465 [490], 8 pgs)
Consensus earnings forecasts are likely to fall 10-15% for the coming years, in our view, & whilst today’s share price move largely encapsulates the d/grade, the question for us is, what price do you pay for this outlook and lack of visibility? We see further risks in Cell & Gene which could be a drag until 2025, especially on the margin. The additional capacity in Early Discovery Services is also likely to be a drag given the biotech funding outlook, as is the Nutraceuticals recovery given depressed consumer spending expected later this year. The October CMD will be critical but in the absence of longer-term targets, we don’t expect a material bounce from here.For 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.