Bachem Holding AG : Navigating strong growth and investment challenges
Swiss-based Bachem is a global leader focused on one of the most attractive areas within pharma outsourcing - TIDES, comprising peptides and oligonucleotides (GLP-1 therapies and complex APIs). Protected by high technological barriers to entry, the company benefits from long-term contracts with key pharma partners which ensure a strong growth outlook but also require high capex to carry out large-scale expansion projects. At this stage, we do not see the risk/reward profile on the stock as attractive enough given that rising debt, and execution risks associated with large-scale expansion projects dampen its short-term upside potential (FCF back to positive only in 2029e). We initiate coverage with a Neutral rating and a TP of CHF 64.6.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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