EUROFINS : Berenberg lowers target, but remains Buy
November 16, 2023 at 05:20 am EST
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Berenberg announced on Thursday that it had lowered its price target for Eurofins Scientific from €105 to €65, but reiterated its buy recommendation on the stock.
In a research note, the research firm points out that the testing, inspection and certification sector has been heavily penalized on the stock market this year, but that Eurofins has suffered the most severe penalty.
With the end of the Covid epidemic, investors' attention is once again focused on core business, margin trends and cash flow optimization," he points out in his study.
From this point of view, the analyst believes that the market's interest in the bio-analysis specialist is 'undervalued', and adds that the medium-term objectives set by the company are perfectly attainable.
In his opinion, the stock will revalue once the concerns surrounding the financing of the group's growth have dissipated somewhat.
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Eurofins Scientific SE is one of the world's leading providers of bio-analytical services. The group's services are intended to validate the safety, authenticity, origin, identity, and purity of biological substances contained in the environment (water, air, soil, etc.) and in food, pharmaceutical, cosmetic, and hygiene products.
At the end of 2023, Eurofins Scientific SE owned a portfolio of over 200,000 analytical methods and had 900 laboratories located throughout the world.
Net sales are distributed geographically as follows: Europe (50.7%), North America (38.5%) and other (10.8%).