On Friday, Morgan Stanley downgraded its recommendation on Eurofins Scientific from 'in-line weighted' to 'underweight', with a price target reduced from 62 to 58 euros.

In a study of the European business services sector, the analyst points out that the valuation premium at which the stock is currently trading could be justified by a favorable earnings dynamic.

On the contrary, he predicts that the situation is likely to worsen before a rebound takes place, due to the unfavorable impact of the economic situation and inflation on organic growth and margins, as illustrated by the recent warnings issued by his peers Sartorius, Charles River and Euroapi.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.