Vitrolife (Hold, TP: SEK155.00) - A strong quarter from Vitrolife
Vitrolife reported Q3 earnings on 6 November. The company reported stronger sales and EBITDA than expected driven by better Media sales in combination with lower than forecast operating costs. In Q4, the company is set to incur some start-up costs for the Illumina deal that slightly hurt profitability. From 2019, as the Illumina sales kick-in, we expect this deal to add c10% to top-line and c3%-5% to EBITDA short-term. Longer-term, this deal will most likely be margin accretive. We keep our HOLD recommendation and have adjusted our target price to SEK155 following our forecast adjustments.Vitrolife AB is a Sweden-based company engaged in assisted reproduction services. The Company's product portfolio comprises G-RINSE, which is a solution for rinsing of contact materials, EmbryoGlue, which is a human albumin recombinant, ASP, which is a solution for oocyte retrieval and rinsing, and Semen VTS, which is a viscosity treatment system, among others. It also provides a range of procedural solutions for sperm preparation, vitrification, embryo transfer and oocyte retrieval, such as temperature control, condition control, gamete-safe labware and embryo support. The Company is active in Australia, China, France, Italy, Japan, the United States and the United Kingdom, among others, and conducts its business through a number of subsidiaries, such as Vitrolife Ltd., Vitrolife Pty Ltd., and A.T.S. Srl.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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