RBC Expects New Midterm Targets from Sandoz at Upcoming Capital Markets Day

11:58 AM EDT, 09/04/2026 (MT Newswires) -- RBC Capital Markets expects Sandoz Group (SDZ.SW) to unveil new midterm targets at its Sept. 8 capital markets day as the Swiss drugmaker heads into its "golden decade" of biosimilars following its recent collaboration deal with Shanghai Henlius Biotech. "New targets should capture the start of the 2029+ biosimilar pipeline opportunity and for 2026-2031, consensus models 6% sales CAGR and a 27% 2031 Core EBITDA margin. Simply reiterating a mid-single digit mid-term revenue CAGR target would be underwhelming and could see a negative stock reaction," the research firm wrote in a Friday note. "We anticipate the company is more likely to point to growth acceleration post-2028. Targeting mid-to high-single digit revenue CAGR 2026-2031 would likely be viewed positively, with a 5-year 7% sales CAGR implying 5% upside to consensus 2031 sales and high-single digit % upside to consensus 2031 EPS." Under its current 2023-2028 midterm guidance, Sandoz expects mid-single-digit net sales growth annually in constant currencies and core EBITDA margin of between 24% and 26%. RBC also anticipates potential announcements on launch timings of Sandoz's biosimilars pipeline, highlighting its pipeline of up to 46 biosimilars under its agreement with Henlius. "Framing the mid-term opportunity for these assets will be a focus, especially given ongoing switches to subcutaneous originators, where corresponding biosimilars are in earlier development," the research firm added. The sector perform-rated stock has a price target of 65 francs.