RBC Updates Lonza Price Target, Estimates After H1 Results

08:14 AM EDT, 07/24/2026 (MT Newswires) -- RBC Capital Markets increased its price target for Lonza Group (LONN.SW) amid a model update as it took into account the Swiss contract development and manufacturing organization's first-half results and upgraded full-year 2026 margin outlook. "Underlying group growth rates are unchanged, with a change in mix between Integrated Biologics (down) and Specialised Modalities (up) in 2026. Fx contributes a +1% change to ests. Group margins increase 1.4ppts in 2026 (Specialised Modalities and Advanced Synthesis), and this is broadly rolled forwards," analysts wrote in a Thursday note. "The net effect is a 1% increase in 2027E sales, 6% on EBITDA and (with higher D&A) 4% on EPS." As such, the price target on the outperform-rated stock was revised to 760 francs from 720 francs. The research firm still expects Lonza's shares to outperform industry peers over the medium term, mainly driven by the company's improving profit-and-loss statement and cash returns.