(Boursier.com) — Sartorius Stedim Biotech fell by 11.3% to 199.6 euros at the opening of the Paris market, sanctioned after its profit warning. The laboratory equipment manufacturer now expects to record a drop in its turnover of nearly 19% (-14% excluding items linked to Covid-19), compared to a decline “of a percentage between the low and the middle of the tens range. Due to lower volume forecasts and product mix effects, the current EBITDA margin is now expected to be slightly above 28%, compared to around 30% previously targeted and 35% last year.
Over the first nine months of the year, the group recorded a consolidated turnover of around 2.069 billion euros, down nearly 19% at constant exchange rate. Management expects profitable growth in 2024 and will give quantitative indications when publishing the figures for the year 2023 in January 2024. Its medium-term ambition until 2025 is currently under study and an update update will also be provided in January 2024.
Morgan Stanley says the weakness in the third quarter was somewhat anticipated, but not to this level. The bank does not consider this a ‘clearing event’ either. After lowering its adjusted EPS estimates from 20% to 31%, Oddo BHF cuts its target from 280 to 206 euros. Uncertainty surrounding new medium-term guidance and weak demand for bioprocessing solutions will continue to weigh on the stock price. “Even though the first green light may be seen as positive, we feel more comfortable staying away and reiterating our ‘neutral’ view,” explains the analyst.
Gilbert Dupont also downgraded the file to ‘reduce’ while reducing his objective from 280 to 221.7 euros.
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