Nico Chen, an analyst from DBS, maintained the Buy rating on Lonza Group Ltd (LONN – Research Report). The associated price target was raised to €710.00.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Nico Chen has given his Buy rating due to a combination of factors that highlight Lonza Group Ltd’s strategic positioning and growth potential. One key reason is Lonza’s significant expansion in the area of antibody-drug conjugates (ADCs), placing them as a leader in this field with the largest global conjugation capacity. This advantage, coupled with their focus on innovative biologics technologies, positions Lonza to attract high-sticking new customers and maintain a favorable outlook for earnings growth.
Nico Chen also notes that Lonza stands to benefit from geopolitical shifts, particularly the US-China tensions. The potential implementation of the Biosecure Act may drive US drug manufacturers to relocate their contract drug production away from China, which could provide Lonza with increased business opportunities. Additionally, despite challenges such as higher costs in Europe, Lonza’s strategic focus on expanding services and maintaining strong customer relationships supports the Buy rating, with a target price set at CHF710.
In another report released on February 3, Deutsche Bank also maintained a Buy rating on the stock with a CHF744.00 price target.