Nordea has resumed coverage of the Danish pharmaceutical company Lundbeck, assigning a buy recommendation and a target price of 55 Danish kroner.
"Based on our analysis, Lundbeck is simply too cheap to ignore," Nordea writes.
The bank highlights strong growth momentum, four consecutive years of multiple positive earnings surprises, and industry-leading cash conversion.
According to Nordea, the stock is trading at the lowest multiples among its peer group despite continued earnings momentum, and the bank considers the valuation too low in relation to the company's growth prospects.
H Lundbeck A/S is a Denmark-based company active in the pharmaceuticals industry. It is engaged in the research, development, manufacture and marketing of pharmaceuticals for the treatment of brain disorders, such as Alzheimer’s disease, Bipolar disorder, depression, epilepsy, Huntington’s disease, Parkinson’s disease and schizophrenia. Its product portfolio includes: Cipralex for the treatment of depression and anxiety disorders, Ebixa for the treatment of Alzheimer’s disease, Azilect for the treatment of Parkinson’s disease, Xenazine for the treatment of Huntington’s disease and Sabril for the treatment of epilepsy, among others. The Company operates through a number of subsidiaries, such as Lundbeck SAS, Lundbeck GmbH, SIA Lundbeck Latvia and Lundbeck LLC.
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