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Investing.com -- UBS on Tuesday upgraded Bachem Holding AG, the Swiss peptide and oligonucleotide manufacturer, to “buy” from “neutral,” raising its 12-month price target to CHF78 from CHF76 after increasing mid-term revenue, EBITDA and EPS estimates. 

The brokerage said the stock’s pullback since the first half of the year created an opportunity to re-enter a company with “high visibility” on long-term expansion, supported by committed customer contracts and a multi-year capacity buildout. 

The brokerage said Bachem’s valuation appeared attractive relative to global CDMO peers, noting the shares trade at 19.2x EV/EBITDA 2025E, in line with the group despite UBS forecasting 19% sales CAGR and 20% EPS CAGR through 2030. 

UBS said the market remained influenced by wider geopolitical uncertainty rather than changes in Bachem’s fundamentals and wrote that meeting FY25 and FY26 consensus could help drive a re-rating. 

At the core of the upgrade is Bachem’s planned about CHF2 billion capex program through 2029, including CHF1.5 billion for growth and CHF0.5 billion for maintenance, underpinned by customer prepayments that UBS expects to reach around CHF0.5 billion by 2029.

 The expansion covers several sites: the CHF750 million-1 billion Sisslerfeld project targeted for commercial start in 2030, the CHF250 million Vista expansion through 2030, and ongoing work at Building K in Bubendorf. 

UBS said Building K, which completed its Swissmedic inspection in November, remains on track for GMP production and a commercial ramp-up in 2026. 

It estimates CHF230 million in FY26 sales from Customer A and CHF60 million in FY26 development sales from Customer B, with additional Building K capacity supported by Bachem’s pipeline of 170 new chemical entities, including 12 Phase 3 projects at end-2024. 

The brokerage forecasts Bachem’s revenue to rise from CHF605 million in FY24 to CHF702 million in FY25, CHF969 million in FY26 and CHF1.154 billion in FY27, supported by an expected around CHF1.7 billion in incremental long-term revenue generated by the expansion program. 

UBS raised its EBITDA estimates to CHF202 million for FY25, CHF288 million for FY26 and CHF360 million for FY27, with margins improving from 28.7% in FY25 to 31.2% in FY27. EPS forecasts rose to CHF1.60, CHF2.30 and CHF2.90 for FY25-27.

The brokerage said most of Bachem’s expansion capex is “de-risked,” with a significant portion of future capacity tied to minimum order commitments and prepayment structures. It said the outlook for peptide and oligonucleotide manufacturing-supported by GLP-1 market growth, underpins Bachem’s sustained double-digit growth visibility.

UBS noted risks including delays in capacity expansion, pressure on GLP-1 drug pricing, potential in-house production increases by pharma, and prolonged negotiations at Sisslerfeld. Still, the brokerage said progress at Building K and secured customer projects strengthened execution confidence and supported the upgrade. 

Investing.com -- Capri Holdings Limited (NYSE:CPRI) announced Tuesday it has completed the sale of Versace to Prada S.p.A. (HKSE:1913) for $1.375 billion in cash, subject to certain adjustments.

The global fashion luxury group plans to use the proceeds to repay most of its debt, which will strengthen its balance sheet, according to John D. Idol, Capri’s Chairman and Chief Executive Officer.

"This transaction will significantly reduce our leverage ratio and provide greater financial flexibility to both invest in our growth as well as return capital to shareholders in the future," Idol said.

Capri Holdings remains focused on executing strategic initiatives across its remaining brands, Michael Kors and Jimmy Choo, to maximize their potential. The company believes it is on track to stabilize its business this year while establishing a foundation for growth in fiscal 2027.

Idol expressed gratitude to the Versace team for their contributions, specifically acknowledging Donatella Versace, Dario Vitale, and Emmanuel Gintzburger for their leadership and commitment to the brand’s evolution.

"I wish the Versace team continued success in the future, and believe Prada is the ideal partner to guide this celebrated luxury house into its next era of growth," Idol added.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Bilfinger shares rose 3% on Tuesday after the industrial services group raised its mid-term financial targets at its capital markets day, outlining plans for faster revenue growth, wider margins and stronger cash generation through 2030.

Bilfinger, which provides engineering and maintenance services across chemical, oil and gas, energy and pharmaceutical sectors, set a new revenue compound annual growth rate of 8% to 10% through the end of the decade. 

The company said 4% to 6% of that increase is expected to come organically. Its earlier target called for a 4% to 5% revenue CAGR for 2026-27. 

The company also lifted its profitability ambitions, aiming for an EBITA margin between 8% and 9% by 2030. Bilfinger’s prior target was a 6% to 7% EBITA margin over 2026-27. 

Cash-flow guidance increased as well, with the company now seeking free-cash-flow conversion of more than 90%, compared with its earlier reference to a level “above 80%,” the wording used in the UBS summary of the company’s previous goals. 

Ahead of the strategy update, the midpoint of Bilfinger’s 2025 guidance remained unchanged at €5.4 billion in revenue and a 5.5% EBITA margin, equal to €297 million. Free cash flow for 2025 is forecast at €330 million. 

Applying the new organic-growth assumptions to the 2025 guidance implies €6.9 billion in revenue by 2030, along with €586 million in EBITA and €527 million in free cash flow. 

When including acquisitions, the implied 2030 revenue rises to €8.3 billion. The addition from acquisitions would represent €1.4 billion in extra revenue, €120 million in EBITA and €109 million in free cash flow under the company’s own definition. 

Bilfinger also provided a long-term margin indication, pointing to an 8% to 9% EBITA margin range for 2030. The midpoint, 8.5%, compares with the 6.8% margin UBS had previously estimated for 2029. 

Recent financial data show the company’s revenue rising from €4.49 billion in 2023 to €5.04 billion in 2024. 

UBS estimates €5.44 billion for 2025. Net earnings increased from €110 million in 2023 to €174 million in 2024, with €202 million expected in 2025. EBIT margins progressed from 3.9% in 2023 to 4.9% in 2024 and are projected at 5.4% in 2025. 

UBS maintained its neutral 12-month rating and set a €98 price target, based on an equal blend of a discounted cash flow model with a 9.9% weighted average cost of capital and 2% terminal growth, and a 10-times EV/EBITA multiple on a 12-month forward view. Bilfinger’s shares last closed at €99.10 on Dec. 1. 

Germany accounts for about 20% of Bilfinger’s sales, with roughly 60% coming from the rest of Europe and about 10% from the Americas. The company remains exposed to industrial spending cycles, competitive pressures and execution risks in long-duration service contracts. 

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