Novonesis has 'runway for runaway growth' - MS starts at 'overweight'

** Morgan Stanley expects Novonesis' NSIS_B top-line and earnings to grow and initiates the Danish biotechnology company with "overweight" rating and a PT of DKK 577

** With "runway for runaway growth", Novonesis will be supported by structural demand drivers across key end-markets, MS says, adding 2025 will be a key contributor with strength in bioenergy in Brazil and India

** Forecasting above-consensus 2024-27 top-line and earnings CAGR, the broker expects the stock to re-rate boosted by sustained premium growth and strong FCF

** Concerns over pricing power overlook the structural growth in end-markets, the company's ability to meet demand, its better commercial alignment, and catch-up potential on pricing

** Out of 18 analysts covering the stock, 13 rate it "strong buy"/"buy", three "hold", and two "sell"/"strong sell"