Berenberg Lifts Sandoz Price Target Amid Expectations of Sustained Biosimilar Strength; Hold Rating Kept

06:31 AM EDT, 08/18/2026 (MT Newswires) -- Berenberg raised its price target for Sandoz Group (SDZ.SW) to 66 francs from 62 francs, citing expectations of sustained biosimilar growth, as analysts maintained the stock's hold rating due to priced-in near-term growth potential. "Sandoz's performance continues to be buoyed by strength in the company's biosimilars segment, in our view. We think that this ongoing delivery in its biosimilar franchise, as well as an anticipated execution on the company's pipeline and expected launches, underpin management confidence in its outlook for 2027 and 2028. However, while we expect biosimilar momentum to persist (bringing both growth and margin benefits), we continue to view that the potential of Sandoz's near-term offering and current product mix is reflected in its valuation," the research firm said Tuesday. Analysts added that Sandoz's 90-basis-point year-over-year core EBITDA margin expansion in the first half highlights the strength of biosimilar mix gains, operational efficiencies and operating leverage. "The company's reiterated FY26E core EBITDA margin expansion guidance implies a slight step-up in margin improvement during H2. We expect that this will be driven by similar factors to [those] experienced in H1," the note said. On the earnings side, Berenberg cut its forecasts for sales, EBIT and EPS for 2026 through 2028.