Intel stock extends gains after report of possible U.S. government stake
On Tuesday, Berenberg revised its price target for Swedish Orphan Bio (SOBI:SS) (OTC: SWTUY), adjusting the figure downward to SEK400 from the previous SEK415, while maintaining a Buy rating on the stock. The adjustment comes amid expectations for increased operating expenses (opex) as the company invests in new drug launches.
The firm's analyst, Harry Gillis, expressed confidence in Sobi's ability to meet its full-year 2025 guidance, which anticipates high-single-digit revenue growth at around 9% and an EBITA margin in the mid-30s percentage range, specifically forecasting a 37% margin. The optimism is fueled by the anticipated success of new, innovative drugs aimed at treating serious rare diseases and the minimal impact of patent expirations on the company's portfolio.
Despite the positive outlook on revenue growth, Berenberg anticipates higher operating expenses than previously estimated. This increase is attributed to greater investment backing the introduction of new products and fewer cost savings from mature assets than initially expected.
Gillis highlighted the rationale behind the revised price target, stating, "We reiterate our Buy rating but lower our price target to SEK400 (from SEK415) to reflect higher opex in the absence of significant incremental development programmes." This statement underlines the firm's belief in the company's strategic direction, despite the adjustments made to account for the increased investment in its product pipeline.
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