New Street Research - SANDOZ GROUP AG (SDZNY) Sandoz - Defensive Growth - Multiple Upside Drivers (BUY, TP CHF46, 14pgs)

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New Street Research

Dominic Rose ...

Naresh Chouhan

EUR 4387.50 For Business Accounts Only

Sandoz - Defensive Growth - Multiple Upside Drivers (BUY, TP CHF46, 14pgs)

Our deep dive into the EU generics business and biosimilar pipeline highlights a truly defensive business, with significant and growing barriers to entry. We believe that as more analysis is done on Sandoz and the company becomes more confident on US biosimilar commercialisation, EPS upgrades will ensue, leading to further re-rating. For context, SDZ trades on 10.5x EBITDA today for cons. EBITDA growth of 11% CAGR 2024-28. Compare that to Stedim (SELL) on 27x EBITDA for a similar 14% EBITDA CAGR. Sandoz also has a stronger balance sheet and lower CAPEX intensity. BUY.
For access to the full note, please contact Naresh Chouhan ( )

13/09/2024 1 EN

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SANDOZ GROUP AG

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US7999261008 Pink OTC Markets Switzerland

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Analysts

Dominic Rose

Naresh Chouhan

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Sandoz - Defensive Growth - Multiple Upside Drivers (BUY, TP CHF46, 14pgs)

Sandoz - 400bps H2 Margin Improvement (BUY, TP CHF46 11pgs)

Sandoz - Transitioning to Specialty Pharma (BUY, TP CHF46 [37], 20 pgs)

Altice France (SFR) Q1 25: Positive new OpFCF guidance despite weak SR and EBITDA result

PDD: 1Q25 Flash - Meaningful Deceleration in Revs; Margins Below Expectations

Kuaishou: 1Q25 Flash - Results Largely in Line

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