Citi double-upgrades Novonesis to 'buy' on valuation, operating outlook

Novozymes A/S

25/03/2026 08:16

** Citigroup raises Danish biotechnology group Novonesis NSISb.CO to "buy" from "sell," citing its "sharp" valuation reset and more "resilient" operating outlook than expected

** The broker notes the stock has de-rated against its peers and traded down to near decade-low multiples in absolute terms despite delivering a stronger start to the year

** Calling the stock "biology at a bargain," Citi sees increasing support from structural drivers like better biosolutions economics in a higher energy cost environment and U.S. dairy capacity expansion

** The brokerage expects Novonesis to deliver sector-leading growth in earnings per share

** In its view, margin sensitivities to power prices, including potential Middle East conflict impact, currently suggest only modest earnings risks

** Out of the 20 analysts covering the stock, 14 rate it "strong buy"/"buy", four "hold", two "sell"/"strong sell" - LSEG data

** Novonesis shares were up 3.5% at 0805 GMT

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))