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Investing.com -- Goldman Sachs has initiated coverage on Gubra A/S with a “neutral” rating and a 12-month price target of Dkr520, representing a 23.9% upside from the current price of Dkr419.80, in a note dated Friday.
The brokerage cited strong prospects for Gubra’s amylin asset GUBAmy and a promising early-stage pipeline but pointed to limited valuation upside relative to broader European biotech peers and what it described as a “balanced risk-reward profile.”
Gubra, a Danish biotechnology company, operates a profitable contract research organisation (CRO) business that supports its pipeline focused on obesity. The CRO segment, Goldman noted, provides a differentiated revenue stream and has grown steadily with above-sector margins since the company’s IPO.
The brokerage highlights how the CRO’s capabilities support Gubra’s development efforts, which include a number of obesity-targeted assets with varied mechanisms of action.
The research identifies GUBAmy, an amylin analogue, as the central driver of the company’s future growth potential.
Goldman Sachs estimates a potential peak sales opportunity of $5 billion for GUBAmy and flags its potential to serve as a meaningful therapy for patients unable to tolerate GLP-1 treatments.
Analysts noted the asset’s strong positioning, supported by its partnership with AbbVie (NYSE:ABBV), which helps mitigate commercialization risk.
The compound also competes with established therapies such as those from Novo Nordisk (NYSE:NVO), Zealand Pharma (NASDAQ:ZEAL) and Eli Lilly (NYSE:LLY).
Despite the positive aspects of Gubra’s development strategy, Goldman Sachs said the stock’s current valuation leaves limited near-term upside.
The brokerage places Gubra in the context of the wider European biotech landscape, where the upside potential is seen as less compelling when compared to its peers.