Siegfried Shares Decline as Berenberg Initiates With 'Hold' Rating on Growth Concerns

Shares in Siegfried Holding (SIX:SFZN) slid more than 3% on Wednesday after analysts at Berenberg initiated coverage of the stock with a 'Hold' rating. The bank set a price target of 77 Swiss francs, citing concerns over near-term growth visibility and project execution.

Cautious Outlook for 2026

Berenberg's initiation note pointed to a slowdown in Siegfried's growth trajectory. Analysts highlighted that the company's "integrated model and compelling positioning are currently overshadowed by a lack of near-term visibility on execution of ongoing projects and the pending confirmation of one large customer contract."

As a result of these uncertainties, the bank forecasts organic growth of just 2.4% for 2026, which it described as an "eight-year low excluding the COVID-19 period." Berenberg stated it sees "limited scope" for Siegfried to continue its previous trend of outperforming the broader market, now forecasting it will grow slightly behind the underlying market's compound annual growth rate of roughly 6% through 2030.

Integration Risk and Market Position

Siegfried is a global contract development and manufacturing organisation (CDMO) that supports pharmaceutical companies. Berenberg noted potential execution risks tied to Siegfried's May 2026 acquisition of three sites from Noramco Group, which is expected to limit further M&A activity in the near term.

Ad

The analysts said unlocking the full potential of the acquired assets depends on successfully repurposing manufacturing capacity. Berenberg estimates Siegfried holds a 1-2% share of the global CDMO market, competing with firms like Lonza, Catalent, and WuXi AppTec.

Valuation Reflects Uncertainty

According to Berenberg's analysis, Siegfried stock trades at 10.6 times its estimated 2027 enterprise value to EBITDA (EV/EBITDA). This represents a notable discount compared to the broader global CDMO peer group, which trades at an average multiple of 15.2 times.

Berenberg concluded that this lower valuation is "currently justified by the prevailing uncertainties and lower growth profile." The bank named Bachem as its preferred Swiss mid-cap CDMO.