Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Deutsche Bank lifts UCB SA shares target on growth outlook

EditorEmilio Ghigini
Published 2024/07/30, 10:24
UCB
-

On Tuesday, Deutsche Bank (ETR:DBKGn) increased its price target on UCB SA (UCB:BB) (OTC: UCBJY) shares to €200 from the prior €150, while maintaining a Buy rating on the stock. The firm's analyst highlighted UCB's first half results, which met all the key expectations.

The analyst noted that while the market has recognized the €4 billion+ potential of UCB's Bimzelx, it has not fully accounted for the possibility of it surpassing €5 billion. This underestimation overlooks the potential growth from upcoming launches in rheumatology and dermatology within the next 12 months.

UCB's recent performance suggests a promising future, with the analyst pointing out the company's reiteration of its 30%+ EBITDA target for the fiscal year 2025 and the possibility for margin leverage thereafter. The analyst's expectations include a mid-30s EBITDA percentage by the late decade, which is still considered a conservative estimate.

The analyst also expressed optimism about UCB's Rystiggo, which is seen to have blockbuster potential. Although there was some disappointment regarding the company's decision to abandon CIDP, the overall growth trajectory for UCB remains strong. Deutsche Bank forecasts a compound annual growth rate (CAGR) of 26% for EBITDA and 32% for EPS from 2024 to 2027, leading to a near doubling of EBITDA by 2028 and a significant revenue increase by the decade's end.

UCB's strategic focus on expanding its product offerings in key therapeutic areas, combined with sound financial targets, has positioned the company for robust growth. The updated price target reflects Deutsche Bank's confidence in UCB's ability to capitalize on these opportunities and deliver sustained financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.