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Lundbeck shares decline after Deutsche Bank downgrades stock to hold

Shares of H. Lundbeck A/S dropped over 6% after Deutsche Bank downgraded the stock to "hold" from "buy," citing concerns about the company's growth trajectory and lowering its price target from DKK 53 to DKK 44. Analyst Manos Mastorakis noted that despite strong performance earlier in 2024, recent developments, including the Capital Markets Day and the acquisition of Longboard Pharmaceuticals, have led to a reassessment of Lundbeck's valuation, with P/E ratios reflecting a significant decline. While some products like Rexulti and Vyepti show promise, the PACAP pipeline is no longer viewed as a major growth driver, prompting a more cautious outlook on the company's future.
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