Siegfried Holding seen up after RBC upgrades on growth prospects

Siegfried Holding AG

03/09/2025 07:49

** Shares in Siegfried Holding SFZN.S are seen up 2.7% in pre-market indication after RBC upgrades the Swiss contract development and manufacturing (CDMO) company to "outperform" from "sector perform"

** RBC cites the company's accelerating growth prospects and the potential for investors to gain low-risk exposure to the CDMO sector

** It notes the stock has fallen almost 25% in the last year but sees growth accelerating in 2026 due to new capacity and easier yearly comparisons

** The brokerage sees Siegfried's discount to peers as justified due to slower growth

** Still, it highlights the company's less pronounced capex cycle vs peers, consistent hiring, and guidance for continued margin expansion

** RBC trims its forecasts following H1 results into line with consensus but sees potential upside from M&A, with Siegfried having capacity for a CHF 300-500m deal

 (Reporting by Bernadette Hogg)

 ((bernadette.hogg@thomsonreuters.com))