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Investing.com -- Goldman Sachs has initiated coverage of UCB (EBR:UCB) with a “buy” rating and a 12-month price target of €250, representing a 46.5% upside from the current share price of €170.70.
The brokerage views the Belgian biopharma company’s Bimzelx launch as a rare growth opportunity in the sector, according to a report published.
The analysts forecast €7 billion in peak sales for Bimzelx, driven by strong clinical data, feedback from key opinion leaders, and early launch momentum.
They flag hidradenitis suppurativa (HS) as a key market, where Bimzelx could emerge as a leader due to favorable data and early timing.
Goldman expects the drug’s launch to prompt upward consensus revisions as diagnosis rates increase.
Revenue from Bimzelx is projected to more than double total company revenue, with UCB’s sales forecast to grow from €5.3 billion in 2023 to €12 billion by 2033.
Over the same period, EBITDA is expected to rise from €1.3 billion to €5.2 billion. Analysts believe this supports a premium valuation given UCB’s growth profile compared to sector peers.
Currently, UCB trades at a 12-month forward price-to-earnings ratio of 13x, versus 28x at its peak in November 2024. The stock also trades 28% below that peak. Goldman sees this as a re-rating opportunity, citing its peak sales forecasts as 12% above consensus.
From 2024 to 2030, UCB is projected to post a compound annual growth rate of 10% in sales and 25% in earnings per share.
That compares with average rates of 5% and 8% respectively for the broader European biopharma sector, excluding UCB.
Goldman’s financial model includes the following forecasts: 2025 revenue of €6.2bn, EBIT of €1.3bn, and EPS of €5.51.
The enterprise value stands at €34.6bn with a market cap of €32.3bn. UCB’s net debt and EBITDA ratio is 0.3x, with no losses reported.
Dividend yield is projected at 1.6% for 2025, with a price-to-earnings to growth (PEG) ratio of 0.6x.
UCB ranks well on Goldman’s factor profile, scoring highest on financial returns and valuation metrics. The company is covered under both European and EU Biopharma research.