Nomura Securities has upgraded Samsung Biologics to a "Buy" rating with a new target stock price of 1,400,000 won ($964.4), reflecting a 66.6 percent increase from the previous buy rating of 840,000 won.
Nomura Securities raises Samsung Biologics’ target price, citing strong growth potential driven by expanding CDMO capacity, biosimilar advancements, and favorable market trends.
Nomura Securities raises Samsung Biologics’ target price, citing strong growth potential driven by expanding CDMO capacity, biosimilar advancements, and favorable market trends.
"Samsung Biologics stands to benefit from rising global demand for outsourced pharmaceutical production," according to Nomura's latest analysis.
Samsung Biologics is expanding its manufacturing capacity to meet growing demand. The company currently operates four production plants, with Plant 5 scheduled for completion in April, adding 180,000L to its manufacturing capacity.
"By 2028, Samsung Biologics’ total biomanufacturing capacity is expected to reach 964,000L, making it the largest contract and development and manufacturing organization (CDMO) globally,” the Nomura's report outlined.
The brokerage also stressed that the global bio-CDMO market is projected to grow at an annual rate of 13 percent between 2025 and 2028, reaching $176 billion by 2028.
"With a strong client base, including 17 of the top 20 global pharmaceutical companies, Samsung Biologics is well-positioned to dominate the market,” the report said.
Notably, key factors driving growth include the potential enactment of the U.S. Biosecure Act, which could limit federal procurement from Chinese manufacturers, and the launch of new biosimilars from Samsung Bioepis, Samsung Biologics’ biosimilar subsidiary.
"This legislation would create increased demand for non-Chinese CDMOs, directly benefiting Samsung Biologics,” the Japan-based securities firm said. “Additional factors include Samsung Bioepis advancing its pipeline, with its Keytruda biosimilar in phase 3 trials, and the expansion into ADC and mRNA production further strengthens Samsung Biologics’ future prospects."
Nomura estimates Samsung Biologics’ revenue to grow from 5.4 trillion won in 2025 to 6.9 trillion won by 2027.
"With an expected 31 percent operating margin and strong profitability, Samsung Biologics’ financial outlook remains solid,” the report wrote. “The company’s 2025 operating profit is forecasted to increase by 28 percent year-over-year, driven by higher utilization rates and contract wins.
The company’s strong order backlog and commitment to innovation make it a key player in the evolving biopharmaceutical landscape, it added.
While the outlook remains positive, the securities firm also outlined potential risks, which include currency fluctuations, increased competition from Chinese biosimilar manufacturers, and regulatory challenges.
Nomura also noted that a stronger Korean won could impact revenue, while rising competition and stricter U.S. FDA and EMA guidelines pose additional challenges.
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Lee Han-soo corea022@docdocdoc.co.kr
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