Lonza: Credit Suisse raises targets to reflect Capsugel deal
(CercleFinance.com) - In a research note published on Monday, Credit Suisse analysts upgraded their estimates on Lonza and raised their target price on the stock to 240 Swiss francs from 185 Swiss francs following the acquisition of Capsugel.
"We see Capsugel as a good deal," the brokerage firm writes in the report.
Credit Suisse explains that Capsugel is a "closely allied business" with plentiful possibilities for cross-selling from Lonza's existing relationships.
The broker—which sees 2.5% accretion to EPS—also points out that Lonza's management has a strong track record of capital discipline.
Earlier this month Lonza completed the acquisition of US-based Capsugel for 5.5 billion dollars in cash.
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