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On Wednesday, Kepler Cheuvreux analyst Jon Berggren upgraded Swedish Orphan Bio (SOBI:SS) (OTC: SWTUY) from Hold to Buy despite reducing the price target to SEK350.00 from SEK360.00. Berggren’s decision to upgrade the stock rating is based on the identification of multiple near-term growth opportunities and research and development catalysts for the company. He notes that the valuation of Swedish Orphan Bio has significantly decreased over the past seven months compared to its five-year historical average, presenting a more attractive entry point for investors.
The key growth drivers identified by Kepler Cheuvreux include the continued strong uptake from Doptelet and Altuvoct. Additionally, the firm anticipates that Beyfortus will contribute to earnings growth as the royalty rate from Sanofi (NASDAQ:SNY) is expected to increase gradually from 2025 to 2028. These factors are seen as positive influences on the company’s near-term financial performance.
From a research and development perspective, the potential U.S. approval of Gamifant for HLH/MAS in Still’s disease during the first half of 2025 is highlighted as the most significant upcoming news flow. This potential approval is expected to have a positive impact on the company’s pipeline and future prospects.
The analyst also mentioned the limited net change in estimate revisions following the first quarter results for the years 2025 and 2026. However, the decrease in the price target from SEK360 to SEK350 is primarily attributed to a lowered valuation for Vonjo, one of the company’s products.
The upgrade by Kepler Cheuvreux reflects a positive outlook on Swedish Orphan Bio’s potential for growth and value creation, supported by its product portfolio and upcoming developments within its research and development pipeline.
In other recent news, Berenberg has revised its price target for Swedish Orphan Bio (SOBI), lowering it to SEK400 from the previous SEK415, while maintaining a Buy rating on the stock. This adjustment reflects expectations of increased operating expenses as the company invests in launching new drugs. Despite the downward revision, Berenberg remains optimistic about SOBI’s ability to achieve its full-year 2025 guidance, projecting high-single-digit revenue growth around 9% and an EBITA margin of 37%. The confidence stems from the anticipated success of new drugs targeting serious rare diseases and minimal impact from patent expirations. However, the firm anticipates higher operating expenses due to greater investment in new products and fewer cost savings from existing assets. Analyst Harry Gillis highlighted the rationale behind the revised price target, citing the absence of significant incremental development programs as a factor. The firm’s belief in SOBI’s strategic direction remains strong, despite the adjustments for increased investment in its product pipeline.
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