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Investing.com -- Berenberg has started coverage on Bachem Holding AG (SIX:BANB) and Nordic Semiconductor (OL:NOD) with Buy ratings, pointing to strong positioning in their respective markets and clear paths to growth.
For Bachem, the broker set a price target of CHF73, implying a 35% upside from the current price.
The firm’s analysts believe Bachem is well-positioned to benefit from a growing industry pipeline and rising demand for GLP-1 drugs, which make up a large part of the peptide market.
“With a c25% market share, a strong track record and expertise, 170 diversified projects in development, constant innovation, and decades of experience having commercialised a third of the 88 approved peptides, Bachem is set to capture short- and long-term market opportunities,” Berenberg analysts said in a note.
Sales are projected to rise to CHF937 million by 2026, in line with consensus, driven by the ramp-up of its Bubendorf facility. The brokerage also forecasts EBITDA margins to reach over 30%, consistent with company guidance.
On the valuation front, the analysts believe Bachem’s share price is “de-risked at these levels, with consensus having revised estimates and the stock down 70% from its peak in 2021.”
Nordic Semiconductor was also started at Buy, with a NOK165 price target and 20% upside.
The company is described as a market leader in Bluetooth Low Energy (BLE) chips, with “a leading 35–45% design-win share, preferred vendor status, top-tier software and support, and broad, competitive product line-up.”
BLE-enabled devices are expected to grow at a 20% compound annual growth rate (CAGR) through 2028, supported by rising demand in Internet of Things (IoT) applications.
Following a two-year downturn, Berenberg sees Nordic as entering a new phase of growth. “We forecast Nordic Semi, underpinned by its leading position and upcoming catalysts, to outpace the market with a 23% sales CAGR in 2025–27.”
The firm also highlights the chipmaker’s margin recovery, forecasting EBITDA margins to rise from -1% in 2024 to 18% in 2026, roughly 2.7 percentage points above consensus.
“This margin improvement should be driven by 1) a top-line recovery, 2) gross margin expansion from cost-optimized new solutions, and 3) R&D growth stabilising after the completion of key market-entry investments,” the analysts explained.
Berenberg values Nordic Semiconductor at 28x EV/EBIT, using a peer-based approach due to its niche market position.