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Investing.com - JPMorgan has lowered its price target on Novonesis A/S (CSE:NSISB) to DKK512.00 from DKK545.00 while maintaining an Overweight rating on the stock.
The adjustment follows Novonesis management’s presentation last week outlining an organic sales growth target of 6-9% CAGR from 2025 to 2030, which JPMorgan describes as "best in class" among its coverage universe.
JPMorgan notes the company’s growth strategy focuses on leveraging its technological advantages, supported by significant R&D investment of over 9% of sales, and customizing offerings to increase product penetration while exploring new applications and markets.
The firm highlighted Novonesis’s higher-than-expected capital expenditure guidance in the low double-digit percentage of sales for the next three years, compared to JPMorgan’s previous estimate of approximately 10%.
Despite the increased capital spending, JPMorgan remains positive on Novonesis’s growth platform, which aims to deliver faster expansion than its historical performance of approximately 6% organic sales growth CAGR over the past decade, while maintaining a post-tax return on invested capital exceeding 20%.
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