Lonza hits bottom of STOXX after it cuts 2024 margin target again

Kodiak Sciences

17/10/2023 08:14

** Shares in Lonza  LONN.S  tumble 10% to the bottom of
pan-European STOXX 600  .STOXX  after the Swiss contract drug
manufacturer cut its 2024 margin target again
    ** The company expects EBITDA margin over sales, adjusted
for one-offs, to be in the "high 20s" next year, vs 31%-33%
projected in July
    ** It cites a decline in business from vaccine maker Moderna
 MRNA.O  and Kodiak Sciences  KOD.O 
    ** It also forecasts 2024-2028 sales growth of 11%-13% CAGR
and a core EBITDA margin of 32%-34% in 2028
    ** Jefferies says the 2028 margin target is "likely to
disappoint", while the sales target is "perhaps less optimistic
in the latter period than some may have hoped"
    ** Tuesday's losses wipe off 3.2 billion Swiss francs ($3.55
billion) from the company's market cap
    ** Lonza holds a Capital Markets Day on Tuesday

($1 = 0.9016 Swiss francs)

 (Reporting by Paolo Laudani)
 ((Paolo.Laudani@thomsonreuters.com))