(Finance) – Intesa Sanpaolo he raised a 63.8 euros per share (from 54.2 euros) on target price on the title BB Biotechan investment company in the field of biotechnology and listed on Euronext STAR Milan, and confirmed the judgement on the title a “HoldThe review came after the company released its results for the first half of 2022. The portfolio management strategy will remain focused on: biotech companies with or close to revenue and / or earnings growth; biotech companies considered undervalued selective new public and private investments in the sector.
Analysts point out that BB Biotech has contributed some in recent years structural changes to its investment strategy which, together with the changed economic environment, could explain the premium investors have been willing to pay for investing in the stock. “We believe these drivers are unlikely to disappear in the foreseeable future and suggest that a premium of 10-20% on the NAVin line with what has been seen in the last four years, it could be a sustainable assumption in a short-medium horizon “, reads the research.
As a short-term risk, analysts report that from September 2022 BB Biotech will be excluded from the SMIM index, which includes the 30 largest mid-cap stocks on the Swiss equity market that are not included in the blue chip SMI index. Therefore, the stock could be adversely affected by portfolio adjustments by passive asset managers.