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Investing.com - Deutsche Bank has raised its price target on Sandoz Group AG (SWX:SDZ) to CHF55.00 from CHF48.00 while maintaining a Buy rating on the stock.
The price target increase follows Sandoz’s second-quarter results, which Deutsche Bank described as "solid if somewhat unremarkable." The stock has risen approximately 30% since Deutsche Bank’s previous upgrade following fourth-quarter results.
Deutsche Bank noted that most of the stock’s recent uplift has been driven by multiple expansion rather than earnings revisions, with the shares now trading at approximately 19 times forward earnings.
The bank highlighted Sandoz’s evolving product mix as a key factor in its positive outlook, with biosimilars expected to increase from about 23% of revenue in fiscal year 2023 to approximately 30% by fiscal year 2025, potentially reaching 40% by the end of the decade.
Deutsche Bank views Sandoz as "one of (the only?) relatively pure-play" opportunities to invest in the biosimilars sector, which it considers a structural thematic tailwind for the company.
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