Lonza Divests Specialty Ingredients for Increased Focus on Biopharma; FVE CHF 620, Shares Overvalued

After taking a fresh look at Lonza, we’ve relaunched coverage with a fair value estimate of CHF 620 per share, a narrow economic moat rating, and a stable moat trend. Lonza has been a dominant player in the contract development and manufacturing space for decades. While the outlook for Lonza looks bright, as drug manufacturing becomes more complex with biologics and cell and gene therapies playing larger roles, we view Lonza’s current share price as overvalued.