Sandoz: Deutsche Bank starts monitoring on 'hold'
(CercleFinance.com) - Deutsche Bank announced on Monday began to monitor Sandoz shares with a "hold" rating and a target price of 26 Swiss francs.
In its morning comments, the analyst says that, after several difficult years under the thumb of Novartis, the generics specialist should benefit from the strength of its market to increase its margins to between 24% and 26% by 2028, compared with under 20% expected this year.
The broker acknowledges that the stock should benefit from buoyant factors, such as favourable demographics, but also considers that the group's business model is not entirely risk-free, and that greater visibility would be welcome for the proper execution of its business.
Sandoz shares were down over 1% following these comments in Zurich, although since going public on 4 October, the share price has risen by almost 12%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In its morning comments, the analyst says that, after several difficult years under the thumb of Novartis, the generics specialist should benefit from the strength of its market to increase its margins to between 24% and 26% by 2028, compared with under 20% expected this year.
The broker acknowledges that the stock should benefit from buoyant factors, such as favourable demographics, but also considers that the group's business model is not entirely risk-free, and that greater visibility would be welcome for the proper execution of its business.
Sandoz shares were down over 1% following these comments in Zurich, although since going public on 4 October, the share price has risen by almost 12%.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.