Novo Nordisk A/S: Update following rating affirmation at A1, outlook c...

Our credit view of Novo Nordisk reflects its leading position in diabetes and obesity care, and very strong credit metrics, against limited therapeutic and product diversification.

3% organic is weak, but underlying is fine

Q1: '24 low point, meagre 3% growth pushes market share lower. Demant doing well overall beyond the 3% figure. HOLD, TP 340 (350) on 3% underlying '24e EBIT cut.

Demant (Buy, TP: DKK400.00) - Better quarters should lie ahead

Q1 organic growth was a soft c3% YOY on tough comparables, reflecting growth of c4% for Hearing Aids and c7% for Diagnostics, but a weak c0% for Hearing Care due to slowing momentum in France. We expect 2024 to be back-end loaded and driven by Oticon Intent. The 2024 guidance was unchanged for key lines, including organic growth of 4–8%, EBIT of DKK4.6bn–5.0bn, and share buybacks of DKK2.0bn+. We reiterate our BUY and DKK400 target price.

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 05/06/2024

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ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 06/05/2024

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Demant A/S : Slower start to 2024, weaker dynamics in France, UK and C...

>Q1 review – slower organic growth leads to miss on sales forecast - Demant’s Q1 revenues of DKK 5,423m (-1.5% y-o-y,) were driven by organic growth of 3% (vs ODDO BHF 6.2%/consensus 4.7%) and were -3%-2% vs ODDO BHF/consensus. The Communication business is excluded from the operating development as the asset is booked as discontinued operation. No bottom line was reported on a quarterly basis.Hearing aids impacted by flat growth in Europe - Hearing a...

Q1 not great, but relief looks warranted

Demant (Buy, TP: DKK400.00) - 2024 likely to be back-end loaded

We forecast Q1 organic revenue growth of 4.7% YOY (in line with consensus), driven by Hearing Care (we forecast 4.9%) and Diagnostics (we forecast 8.4%), while Hearing Aids faces a tough YOY comparable (we forecast 3.6%). We expect 2024 to be back-end loaded and driven by Oticon Intent. We expect maintained 2024 guidance of 4–8% organic growth, c1% M&A growth, c-1% FX, and EBIT of DKK4.6bn–5.0bn. We reiterate our BUY and DKK400 target price.

Oncopeptides (No_rec, TP: SEK) - Rights issue announced

Oncopeptides this morning announced plans for a cSEK300m fully guaranteed rights issue. This should not come as a surprise to the market as the company was very clear in its Q4 report that it had financial resources to last into Q2 2024. Due to DNB Markets’ role in the rights issue, we have withdrawn our target price and recommendation.

Demant (Buy, TP: DKK400.00) - Improved long-term outlook

At its CMD, Demant updated its long-term outlook. It now targets 8–10% LCY growth (7–10%) including 6–8%-points organic growth and c2%-points M&A growth, and still sees incremental EBIT margin expansion. It expects the hearing-aid market to grow 4–6% p.a. in value (2–5%), as ASP is now guided fairly flat. We are positive on the Sirius-based Oticon Intent launch. We reiterate our BUY, and have raised our target price to DKK400 (375).

Oncopeptides (Hold, TP: SEK5.50) - US not an option, focus on Europe

In line with our base-case scenario, the FDA has withdrawn the accelerated approval for Pepaxto in the US. As a result, the focus is now growth in Europe, where it has full approval. Q4 earnings were weaker than we expected, but we believe the sales trend is moving in the right direction. We reiterate our HOLD, but have lowered our target price to SEK5.5 (7).

Novo Nordisk A/S - December 2023 (LTM): Peer Snapshot

Compares key performance metrics against industry peers.

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 02/19/2024

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ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 19/02/2024

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Demant A/S : Strong performance to continue

>Strong performance to continue - Demant’s Q4 results showed, with an organic growth of 10%, a continuation of the strong performance of previous quarters. On the back of the announced launch of the new hearing aid platform Oticon Intega, we expect that the market share gains in the hearing aid segment will continue also in 2024. Our organic growth forecast for 2024 stands at 7.4% (guidance 4-8%) for the company driven by an expected 8.0% for the hearing aid wholesale...

Novo Nordisk A/S: Update following rating affirmation

Our credit view of this issuer reflects its good track record in successfully developing and commercialising new treatments within diabetes care, offset by A degree of M&A risk.

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 02/06/2024

Today we are adding CRH to the ODDO BHF European Large Caps Convictions List. It is exposed to the US economy, which we believe will continue to outperform the European economy, as borne out by the very robust job creation figures released last Friday. CRH generates 75% of its EBITDA in the 10 fastest-growing US states, and also has positive technical catalysts such as its future inclusion in the S&P TMI and Russell 1000 indices. - ...

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 06/02/2024

Nous faisons rentrer aujourd’hui CRH dans notre liste de valeurs recommandées Large Caps. Elle est exposée à l’économie américaine qui va continuer ,selon nous, de se montrer plus dynamique que l’économie européenne, comme en ont attesté les très bons chiffres de création d’emploi vendredi dernier. Elle réalise 75% de son EBITDA dans les 10 Etats américains à plus forte croissance et dispose en outre de catalyseurs techniques positifs comme sa future entrée dans les indices S&P TMI et...

Demant A/S : Strong organic growth continues – 2024 guidance implies s...

>Q4 review - Demant’s Q4 revenues of DKK 5,885m (+10.1% y-o-y, in line with expectations) were driven by strong organic growth of 10% (ODDO BHF/consensus 8%/10%). Hearing healthcare was up 12% organically, driven by an increase of 16% at Hearing aids, while Hearing care and Diagnostics were up 8%, respectively. Communication declined by 25% organically. H2 EBIT of DKK 2,134m (+31.8% y-o-y, margin 18.9%) was -6%/-1% below expectations. EPS of DKK 5.81 was a miss of exp...

Demant (Buy, TP: DKK375.00) - Communication follow Implants out

The 2023 guidance was reached but with sales and EBIT at the low end. The guidance for 2024 was strong: organic revenue growth of 4–8% YOY and EBIT of DKK4,600m–5,000m. We view the potential divestment of EPOS and management’s comments on the imminent launch of Oticon Intent as positives for the growth and earnings outlooks. We reiterate our BUY, and have increased our target price to DKK375 (355).