Original-Research: Eckert & Ziegler SE (von NuWays AG): BUY

Classification of NuWays AG to Eckert & Ziegler SE

Company Name:	Eckert & Ziegler SE
ISIN:	DE0005659700
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 21.5
Target price on sight of:	12 months
Last rating change:
Analyst:	Simon Keller

Strong Ga-68 outlook attracts competition; chg. est. & PT
The prostate theranostics market is expanding fast. Novartis reported Pluvicto Q2 2026 sales up c. 43% yoy. Stronger therapy volumes relate to more Ga-68 PSMA PET diagnostics, often utilizing EUZ's Ga-68 generator. EUZ is benefitting from the demand, currently accounting for an estimated 60-80% of the Ga-68 generator market with its product GalliaPharm (c. 20% of group revenues).
The opportunity has not gone unnoticed. Curium, a global radiopharma player, received an EU-wide marketing authorisation for GalenVita in early 2026, its own Ga-68 generator, and we expect commercial entry in H2 2026. Curium gained access to the generator production through its acquisition of Istanbul-based Monrol in 2025, a deal primarily made to expand Lu-177 capacity for Curium's own therapy pipeline in prostate cancer and NETs. GalenVita is produced at Monrol's base in Istanbul, and Curium has said it intends to roll it out globally.
Despite the new competition, we still expect EUZ to grow its Ga-68 franchise, even as its market share is likely to decline. As the incumbent, EUZ benefits from existing supply agreements, a track record of proven deliveries and scale, which should help it defend its position even if the products are otherwise broadly comparable. The market has so far been a duopoly, with EUZ the clear leader. Curium holds the EU approval, but given the operational complexity of scaling output, we see its production ramping only gradually. Over the mid-term we expect it to capture c. 30% of the market (eNuW) with pricing remaining rational. With the market roughly doubling by 2030 (eNuW, c. 15% CAGR), market growth looks set to more than offsets the share EUZ cedes. From a c. € 60-65m Ga-68 base in 2025 (eNuW), we therefore see EUZ's Ga-68 sales to grow at c. 10% CAGR to reach c. € 100m by 2030.
Potential Lu-177 upside in H2 for EUZ. Lantheus' PNT2003, a radioequivalent to Lutathera, may be nearing launch after the 30-month regulatory stay expired in June and a court invalidated Novartis' asserted Lutathera patents. While discussions around a potential acquisition of Lantheus by Curium add some uncertainty regarding the launch and the eventual supply setup, a commercial launch could provide a meaningful boost to EUZ’s Lu-177 volumes through its more than € 100m supply agreement with POINT (now Eli Lilly), the expected manufacturer of PNT2003.
Q2 preview: margin resilience despite revenue normalisation. Q2 sales are seen to decline c. 4% yoy to € 77m (eCons: € 76.6m), with diverging trends across the two segments. Medical revenues should soften against a demanding comparison base, as Q2 2025 benefited from catch-up deliveries following the cyberattack-related disruptions in Q1 2025. By contrast, Isotope Products is expected to recover from a subdued start to the year. Group adj. EBIT is seen declining by c. 3% yoy to € 17.9m (eCons: € 18.5m), still implying a 0.3pp yoy margin improvement to 23.3%.
To conclude, EUZ offers picks-and-shovels exposure to the structural growth of radiopharma, supported by its established Ga-68 franchise, emerging Lu-177 contribution and growing exposure to Ac-225 and Pb-212. While near-term sentiment may be subdued due to softer Q2 growth and uncertainty around new competition, the current valuation looks increasingly appealing. At c. 8x 2026e EV/EBITDA (eNuW), compared with a three-year average of c. 12.5x, we regard the risk/reward as attractive and reiterate BUY with a new PT of € 21.50 (old: € 23.00), based on DCF, with the reduction mainly reflecting more conservative Ga-68 growth assumptions.
 
You can download the research here: eckert-and-ziegler-se-2026-07-23-update-en-005fa
For additional information visit our website: https://www.nuways-ag.com/research
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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