Novonesis stock target lifted, Buy rating reiterated on growth outlook By Investing.com

On Monday, Goldman Sachs updated its outlook on Novonesis A/S shares (NSISB:DC), a company listed on the Copenhagen Stock Exchange, by raising its price target from DKK471.00 to DKK500.00. The firm has maintained its Buy rating on the stock. The revision reflects a more positive view on the company’s prospects, taking into account several factors that are expected to drive growth and profitability.

The investment firm’s optimism is partly based on a “more constructive assessment of the investment outlook, regulatory backdrop, and diversification tailwinds” for Novonesis’s Bioenergy business. Additionally, Goldman Sachs cites “more favourable market dynamics” in the Food & Beverage sector, as observed by industry peers.

Goldman Sachs now anticipates that Novonesis will outperform market expectations for adjusted EBITDA in the financial years 2024 to 2026. The firm’s forecasts are now 2-3% ahead of the consensus for this period. The updated 12-month price target represents an increase to DKK500.00, up from the previous target of DKK471.00.

Looking ahead, Goldman Sachs expects Novonesis to reveal new long-term goals at the forthcoming Capital Markets Day (CMD). These targets are predicted to suggest a boost in both growth and profit margins beyond the current forecasts for the fiscal year 2025.

Goldman Sachs projects an Organic Sales Growth (OSG) of 8.2% and adjusted EBITDA margins of 39.5% by 2030, compared to the company’s existing targets of 6-8% OSG and approximately 37% margins for FY25.

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