DNB Carnegie lowers the justified value for EQL Pharma
DNB Carnegie lowers its justified value for the generic company EQL Pharma to SEK 65-85 (70-90) after adjusted forecasts and increased short-term uncertainty, according to a commissioned analysis.
ANNONS
The research house lowers EBIT forecasts for the broken fiscal years 2025/26, 2026/27 and 2027/28 by 10, 13 and 7 percent, respectively, mainly due to elevated freight costs from the conflict in the Middle East, which is expected to continue at least through the first half of 2026.
At the same time, the company is assessed to have potential in the medium term.
"Although the short-term effects are partly offset by lower operating expenses, in line with somewhat weaker growth and activity, we remain positive on the growth outlook and believe that the order backlog points to continued expansion. However, since the launches in 2025/26 provide limited tailwind, we believe growth is largely dependent on new launches, the timing of which is still uncertain, which implies some forecast risk for 2026/27," the research house writes.
