Tuesday, Deutsche Bank analysts issued a new price target for Bachem Holding AG (BANB:SW) shares, reducing it to CHF65.00 from the previous CHF71.00, while maintaining a Hold rating on the stock. The revision followed the company’s fiscal year 2024 results, which led to a reassessment of the potential revenue contributions from its Building K expansion.
The analysts noted that despite Bachem’s assurance that the timeline for Building K remains on track, significant revenue from this source is no longer expected in 2025. Test batches are projected to begin in the second quarter of 2025, but the recognition of revenue from commercial batches may be delayed until late 2025 or early 2026.
The report highlighted that while investors may be less concerned about meeting the exact 2026 revenue guidance of over CHF1.0 billion, as long as revenues are generally in line, there are several factors that need to align for Building K to contribute effectively. The analysts prefer to see the first successful batches from the expansion before adopting a more positive outlook on the stock.
The price target adjustment reflects the analysts’ cautious stance on Bachem’s investment case. The last closing price for Bachem stock was CHF58.60, and the new target represents an increase from this level. However, the report suggests that investors may want to wait for tangible results from Building K before changing their investment stance.
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