Oil prices extend gains; Russian attacks, U.S. crude stocks in focus
Investing.com - Deutsche Bank lowered its price target on Novonesis A/S (NSISB:DC) to DKK490.00 from DKK520.00 on Tuesday, while maintaining a Buy rating on the stock.
The price target reduction follows Novonesis’s Q2 results, which showed organic sales growth of 8%, in line with consensus expectations, despite EBITDA missing consensus by 5%.
Deutsche Bank attributed the EBITDA miss to foreign exchange and tariff costs, noting that the tariff costs will be recouped in the second half of the year, while FX headwinds are partially offset by hedging gains.
Novonesis has raised its full-year organic sales growth guidance to 6-8% from the previous 5-8%, while maintaining its margin guidance of 37-38% despite higher foreign exchange headwinds.
The stock experienced a 7% decline following the earnings announcement, which Deutsche Bank characterized as an "over-reaction" given that earnings per share were broadly in line with the bank’s expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.