On Friday, RBC Capital Markets maintained its positive stance on Swedish Orphan Bio (SOBI:SS) (OTC: SWTUY), reiterating an Outperform rating and a SEK370.00 price target. The firm highlighted the company's diversified portfolio of growth drivers, which are anticipated to support a compound annual growth rate of 15% in EBITDA over the midterm. This growth rate is noted to be approximately double that of the sector average.
Swedish Orphan Bio's current valuation reflects a 9% discount on the 2024 estimated EV/EBITDA, which RBC Capital considers not reflective of the company's growth potential. The firm's confidence in the company's prospects remains steadfast despite expectations of an unremarkable second-quarter performance, which will likely exhibit limited sales growth and a decline in earnings per share (EPS).
RBC Capital has provided insights ahead of the company's second-quarter results, which are scheduled to be announced on July 16. The anticipated figures are expected to be impacted by one-time phasing effects and the consequences of the CTI deal. These factors are projected to temporarily cloud the quarterly financial results.
The firm clarified that the expected subdued second-quarter report should not affect the full-year or mid-term outlook for Swedish Orphan Bio. RBC Capital's analysis suggests that the anticipated dip in the upcoming quarterly results is a transient effect and does not undermine the company's overall growth trajectory.
Investors and stakeholders are advised to look beyond the forthcoming quarterly results, as the temporary factors at play do not alter the long-term financial expectations for Swedish Orphan Bio.
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