Lonza Group AG "Starting up the CDMO cash machine" (Buy) Rafaisz

研报英文原文证据摘录

Lonza Group AG "Starting up the CDMO cash machine" (Buy) Rafaisz

Global Research

24 July 2026ab

Lonza Group AG Equities

SwitzerlandStarting up the CDMO cash machine

Biotechnology

12-month rating Buy

Negative share price reaction despite EPS upgrades

The initial reaction to the company's H126 results was muted. Investors noted the 12m price target CHF685.00

absent organic growth guidance increase and the below-average performance at the Prior : CHF650.00

growth engine Integrated Biologics (grew 10% at stable margins). Investors also worried

Price (23 Jul 2026) CHF542.20

that the strong FY26 margin performance could come at the expense of future margin

expansion. We take a different view and attribute the Integrated Biologics performance RIC: LONN.S BBG: LONN SW

to inherent lumpiness. In our view, H2 exit rates should also have no bearing on H127 or

Trading data and key metrics

FY27 performance and margins should continue their upwards trajectory. Reflecting the

52-wk range CHF588.60-466.70

higher margin guidance, we increase our EPS by c5% on average and consequently hike

our PT to CHF685 per share (from CHF650). Despite the positioning driven rebound in Market cap. CHF38.1b/US$46.6b

the stock leading up to the H1 print, we note that the shares are still flat YTD and flat Shares o/s 70.2m (REG)

since mid-2022 despite the DD-growth profile and record margin levels. We hence see Free float 97%

the re-rating potential for the stock as fully intact. Avg. daily volume ('000) 162

Avg. daily value (m) CHF83.6

Cash engine warming up Common s/h equity (12/26E) CHF8.73b

Lonza has tightened its grip on cost control and doubled down on its asset efficiency P/BV (12/26E) 4.4x

efforts. This has become evident in the margin uplift and EBITDA growth.