Trading Desk
“Trading idea”: Lonza – Good Is (After All) Good Enough
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Wolfgang Hagl
Redaktor
The contract pharmaceutical manufacturer is making a comeback on the share market. Although investors have taken profits in the meantime, the upward breakout – along with the prospect of further price rises – remains intact.
With “Du bist gut genug” (“You are good enough”) by KitschKrieg, Blumengarten and Shirin David have landed a summer hit. With its catchy chorus, the song caused a stir worldwide. On the share markets, however, this catchy tune proved difficult to capitalise on during the most recent earnings season. Here, the motto “Good isn’t good enough” seemed more apt. Although many companies, particularly those in the previously red-hot semiconductor sector, reported strong figures, investors still sold their shares. Although Lonza has little to do with chips, this pattern was also evident at the contract pharmaceutical manufacturer.
On 22 July, the Basel-based company published its half-year report. In it, they reported a surge in turnover and earnings for the first six months of 2026. At constant exchange rates, revenue from continuing operations rose by 16% to just under CHF 3.4 billion. Core operating profit (EBITDA) reached CHF 1.175 billion, representing a disproportionately high increase of 27.4%. Analysts had expected the figure to be CHF 45 million lower. The operating margin widened by 4.4 percentage points to 34.8%. According to the company, Lonza continues to benefit from outsourcing at major pharmaceutical companies as well as from customers in the biotech sector.
“Strong numbers alone don’t guarantee rising share prices.”
CEO Wolfgang Wienand has revised the forecast. He now expects a core EBITDA margin of between 33% and 34% for 2026. Previously, the company had anticipated a figure of more than 32%. Wienand, however, maintained the revenue outlook. In 2026, business volume is expected to increase by between 11% and 12% at constant exchange rates. This is where the top executive caught investors off guard. Ahead of the results announcement, there had been speculation that the revenue guidance would be raised. This disappointment initially overshadowed the strong figures and the optimism regarding profitability. On the day the results were presented, Lonza’s share price slumped by up to 6.5%.
Profit-taking is also likely to have played a part. After all, the SMI title had managed to break out of a multi-year downtrend at the start of the summer. The pullback brought the share price back down to that trend line from its high. However, with a rebound starting almost exactly from the 200-day moving average, the share price has saved the buy signal. Fundamentally, the outlook is one of growth, although the pace is likely to slow slightly in Q2. Lonza has set the course for this by focusing on its core business and selling its “Capsules & Health Ingredients” division.
With the Mini Future Long, traders can bet that the large-cap share will now move towards the resistance level of approximately CHF 600. With a current leverage of 4.7, the product participates in rising prices. At CHF 472.35, the stop-loss is 17.7% below the underlying’s price. However, this margin should not obscure the fact that disproportionate losses loom should Lonza be deemed “not good enough” by the majority of investors and turn downwards once again.
Product information*
| ISIN | CH1554488861 |
| Product type | Mini Future Long |
| Underlying | Lonza |
| Issuer | BNP Paribas |
| Rating | A+ (S&P) |
| Underlying currency | CHF |
| Trading currency | CHF |
| First trading day | 21 May 2026 |
| Maturity | open-end |
| Leverage* | 4.70 |
| Stop loss* | CHF 472.35 |
| Financing level | CHF 451.4896 |
| Ask* | CHF 1.23 |
| Ask underlying* | CHF 573.497 |
| Exchange | Swiss DOTS |
| Web link | bnp.ch/CH1554488861 |
Price performance Lonza
