UBS starts Gerresheimer with 'buy' on 1 exposure
** UBS initiates Gerresheimer GXIG.DE with "buy," as it sees the German medical packaging supplier as an attractive play on GLP-1 class of diabetes and weight-loss drugs
** The brokerage highlights Gerresheimer's exposure to all relevant players and optionality stemming from CagriSema, one of Novo Nordisk's NOVOb.CO "high profile" type 2 diabetes/obesity pipeline assets
** Although in UBS' viewGerresheimer doesn't need CagriSema to win GLP-1 volumes, it would be incrementally helpful to lift the group's revenues and margins
** Regardless of the outcome of the drug candidate's phase 3 trial, the broker believes Gerresheimer can achieve close to its mid-term 10% revenue CAGR thanks to its GLP-1 exposure
** Though UBS's estimates on sales and earnings match the consensus, the brokerage notes it sees a clear path for the company to finally show margin and free cash flow expansion
** Shares in Gerresheimer are up 3.1% at 0950 GMT
** Out of the 16 analysts covering Gerresheimer, 15 rate it "strong buy"/"buy" and one rates it "hold" - LSEG data
Reporting by Amir Orusov
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
