'Biosolutions Powerhouse' - Barclays upgrades Novozymes, Chr Hansen

Novozymes A/S

03/11/2023 14:06

** Barclays ups Danish consumer chemical groups Novozymes
 NZYMb.CO  and Chr Hansen  CHRH.CO  to "overweight" from "equal
weight", citing increased confidence on long-term growth
prospects for their future combined business
    ** The broker notes that both Chr Hansen and Novozymes
reported in October strong quarterly results, driven by solid
organic sales growth
    ** It says that the relatively muted re-stocking,
de-stocking cycle at both companies over the past 12 months
highlights better visibility than that of peers
    ** Barclays points out that the duo has the highest gross
margins across the sector, reflecting their strong market
positions
    ** It adds that the pending Novozymes-Chr Hansen combination
is "much clear" deal than M&A in the ingredients space and says
it is optimistic that the companies' similar cultures, simpler
product portfolios and cleaner IT/IS systems will help avoid
pitfalls
    ** Barclays ups PT for Novozymes to DKK 364 from DKK 330,
and for Chr Hansen from DKK 470 to DKK 555 

 (Reporting by Elviira Luoma)
 ((Elviira.luoma@thomsonreuters.com))