Lonza initiated with a Buy at Redburn Atlantic

Redburn Atlantic analyst Jamie Clark initiated coverage of Lonza (LZAGY) with a Buy rating and CHF 650 price target Lonza, as the world’s largest contract development and manufacturing organization, has long-term contracted revenues and high barriers to entry, while demand for biologic capacity is booming, the analyst tells investors. The firm sees the material investment Lonza has made in expanding its capacity between 2024 and 2026 driving high-teens biologics revenue growth and a 2024-27 core EPS compound annual growth rate of 19% with additional long-term upside catalysts, the analyst added.