Citi resumes Galderma with 'buy' on dermatology strategy, Nemluvio upside

Citi resumes Galderma GALD.S with "buy", as it expects continued strong execution of the dermatology firm's pure play global strategy

The broker's optimism with Galderma's global focus on dermatology is supported by the hiked Nemluvio product peak sales guidance to $4 billion from $2 billion and ex-U.S. growth momentum in Injectable Aesthetics target population, including GLP-1 patients

The broker also points to an attractive core EBITDA margin development and cash generation

"The L'Oreal OREP.PA stake provides a valuation backstop given the structural route to market synergies between injectables and on-site dermatological products," Citi adds

Shares in Galderma are up 1.8%