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Investors and market observers will likely continue to monitor Lonza’s financial health and market performance, especially as the company progresses beyond the exceptional circumstances brought on by the pandemic and seeks to capitalize on its strong market position and growth strategy. InvestingPro subscribers have access to 12 additional key insights about Lonza, including its 25-year track record of consistent dividend payments and detailed valuation metrics. For comprehensive analysis and expert insights, access the full Pro Research Report, available exclusively to InvestingPro subscribers. InvestingPro subscribers have access to 12 additional key insights about Lonza, including its 25-year track record of consistent dividend payments and detailed valuation metrics. For comprehensive analysis and expert insights, access the full Pro Research Report, available exclusively to InvestingPro subscribers. The firm anticipates that Lonza’s fiscal year 2024 earnings report, released on 29 January, will introduce only minor adjustments to the consensus earnings per share (EPS) forecasts. These forecasts are expected to reflect some of the most robust growth rates within Berenberg’s coverage, with a projected two-year compound annual growth rate (CAGR) of 17%.
Investors and market observers will likely continue to monitor Lonza’s financial health and market performance, especially as the company progresses beyond the exceptional circumstances brought on by the pandemic and seeks to capitalize on its strong market position and growth strategy. InvestingPro subscribers have access to 12 additional key insights about Lonza, including its 25-year track record of consistent dividend payments and detailed valuation metrics. For comprehensive analysis and expert insights, access the full Pro Research Report, available exclusively to InvestingPro subscribers. The improved results were attributed to higher underlying EBITDA margins, which excluded the one-off RNA COVID-19 vaccine/RNA contribution from 2023, and to a constant-FX sales growth in the low teens, excluding the same one-off factors.
The report from 29 January suggests that Lonza is well-positioned to sustain its earnings momentum moving forward, even as it transitions away from exceptional gains related to the pandemic. The company’s ability to outperform expectations with solid underlying margins and sales growth is indicative of its operational strength and market position.
Lonza’s performance is particularly notable given the competitive landscape and the challenges faced by the pharmaceutical and biotech industries in maintaining growth. The company’s focus on high-growth areas, such as biologics and specialized manufacturing processes, appears to be paying off.
Investors and market observers will likely continue to monitor Lonza’s financial health and market performance, especially as the company progresses beyond the exceptional circumstances brought on by the pandemic and seeks to capitalize on its strong market position and growth strategy.
In other recent news, Lonza Group AG has seen several significant developments. CFRA raised the company’s stock price target to CHF660, maintaining a "Buy" rating. This adjustment followed Lonza’s 2024 sales report of CHF6.6 billion and a core EBITDA margin of 29.0%, despite a contract termination with Moderna (NASDAQ:MRNA). Underlying sales grew by 7% due to strong performance in Lonza’s contract development and manufacturing organization (CDMO) business, particularly the Biologics division.
Lonza has also decided to divest its Capsules & Health Ingredients (CHI) business, a significant step in the company’s evolution. KeyBanc Capital Markets maintained a positive outlook on Lonza, reiterating an Overweight rating and citing the company’s potential for high growth by 2025. The company also anticipates low-teens organic growth on its core business, aligning with its long-term targets.
Analyst firms Goldman Sachs and RBC Capital have also updated their stances on Lonza shares, with Goldman Sachs initiating coverage with a buy rating, and RBC Capital raising its target for Lonza shares. Lastly, CLSA raised its price target for Lonza shares from CHF702 to CHF723, maintaining its Outperform rating, based on the company’s strong growth outlook.
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