UBS ups PolyPeptide to 'neutral' as potential future challenges now look priced-in

PolyPeptide AG

13/12/2022 10:39

** UBS upgrades PolyPeptide  PPGN.S  to "neutral" from
"sell", as the stock's sharp fall year-to-date prices in
potential future challenges, according to the broker 
        ** PolyPeptide shares have lost over 80% so far this
year
  
    ** UBS notes the previous guidance of the Swiss group, which
makes peptides for pharma and biotech companies, forced it to
have a very tight H2 2022 schedule, rendering impossible any
make-up for the production losses
    ** It assumes the firm will operate at lower capacity
utilization going forward in order to maintain a degree of
manufacturing flexibility 
    ** "We think the valuation now reflects the complex peptide
manufacture which, at large scale, is still relatively new for
PolyPeptide," it sums up
    ** The broker highlights the stock's 33% discount vs
European contract development and manufacturing organization
peers 
    ** Out of 5 analysts that cover PolyPeptide, ​one rates the
stock "strong buy", three rate it "hold", and one rates it
"sell"
 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))