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Lonza Group (SWX:LONN) Expands In Oregon On Questions Over Whether Value Is Already Priced In

Simply Wall St · 1d ago

Lonza Group expansion in Bend, Oregon

Lonza Group (SWX:LONN) has announced a large-scale spray-drying facility in Bend, Oregon, aimed at reinforcing its US manufacturing footprint and supporting small molecule, biologics, and mRNA programs.

The project centers on a commercial spray-drying hub equipped with two PSD-4 units and supporting solvent infrastructure. It is designed to offer full spray-dried dispersion capacity across clinical and commercial stages.

Management expects completion in 2029, with the new plant initially adding more than 80 jobs and contributing to a more regionalized supply chain for customers that rely on critical therapies.

Lonza Group’s Oregon build-out comes at a time when momentum has been choppy, with the share price at CHF548.8 after a 7-day share price return of 2.73% and a 30-day share price return that declined 7.33%.

Over a longer horizon, the 90-day share price return of 6.52% and year-to-date share price return of 2.46% sit alongside a 1-year total shareholder return of 2.54% and a 3-year total shareholder return of 30.23%. This suggests sentiment has been improving in phases, even though the 5-year total shareholder return declined 21.11%.

Scan beyond Lonza Group and evaluate other contract manufacturing and healthcare specialists using the curated 131 healthcare AI stocks that are building capacity around next-generation therapies and advanced platforms.

For Lonza Group, the Oregon build-out comes at a time when the share price has moved in uneven bursts rather than in a straight line. Are investors now paying for improving business fundamentals, or for a swing in mood that could fade as sentiment shifts?

Most Popular Narrative: 19% Undervalued

Against Lonza Group’s last close at CHF548.8, the most followed narrative points to a fair value of CHF677.61, which would leave the shares trading at a discount if those assumptions hold.

Lonza's strategic and diversified investments in cutting-edge manufacturing facilities (notably in mammalian, bioconjugate, cell & gene, and highly potent APIs) and automation upgrades (including the ongoing Vacaville and Visp expansions) are set to capture growing customer demand for next-generation therapies and support operating leverage, pointing to higher margin growth and improved group EBITDA margins.

See why 33 investors see Lonza Group as 19% undervalued.

Result: Fair Value of CHF677.61 (UNDERVALUED)

Still, Lonza Group faces two clear pressure points: execution risk on large projects like Vacaville and Visp, and potential earnings drag from currency moves and a Capsules and Health Ingredients sale.

Find out about the key risks to this Lonza Group narrative.

Another View on Lonza Group’s Valuation

Lonza Group appears underpriced relative to the CHF677.61 analyst fair value, yet the SWS DCF model suggests a different perspective. On that cash flow view, the shares trade above an intrinsic value of CHF376.95, which indicates that the market may already be factoring in future expectations. Which assessment do you find more convincing?

Look into how the SWS DCF model arrives at its fair value.

LONN Discounted Cash Flow as at Sep 2026
LONN Discounted Cash Flow as at Sep 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Lonza Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 174 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals around Lonza Group can pull you in both directions. Move quickly past headlines, review the details, and weigh the 4 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.