Sobi Earnings: Maintaining Our SEK 252 Valuation Following Particularly Strong First Quarter

Sobi’s top line grew 19% in a particularly strong first quarter, and we’re maintaining our SEK 252 fair value estimate. Management maintained its full-year forecast for high-single-digit revenue growth at constant exchange rates and an adjusted EBITA margin in the mid-30s, and we think the firm looks on track to maintain this level of growth and EBITA margin for the next several years. However, we do not assign Sobi a moat, given competitive pressures in the hemophilia market and Sobi’s lack of internal innovation to support its intangible assets beyond our 10-year explicit forecast.