EUR 4333.50 For Business Accounts Only

Novo - Most Exposed to Inflation - D/G to HOLD (HOLD [BUY], PT DKK800, 10 pgs)

As part of Intron Health’s “Inflation Series” analysis & today’s note on Cost Savings [HERE], we show Novo is most exposed to rising cost pressures. This is due to the having the lowest ability to raise price rises or cut costs. We estimate that Novo will face a net 5% EBIT hit from rising costs in 2023. We estimate that only 27% of Novo’s portfolio has the ability to raise prices. Furthermore, given Novo’s need to invest in S&M along with an already lean sales organisation based on our benchmarking analysis, Novo has the lowest ability to cut costs to offset inflationary pressures, in our view. R&D is also set to grow materially. We believe consensus forecasts are now full & the next meaningful catalyst is not until next year with Sema in NASH. On our no’s, Novo trades at a ~60% sector premium in 2023 and a 33% premium in 2026 which we believe fully values its 13% EPS CAGR. D/G to HOLD. SAN top pick.
For access to the full note, please contact Naresh Chouhan ( )