New Street Research - Sartorius Stedim Biotech SA (DIM) Lower Trend Growth Being Priced In

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New Street Research

Dominic Rose ...

Naresh Chouhan

EUR 4553.00 For Business Accounts Only

Lower Trend Growth Being Priced In

Following commentary from mgmt. yesterday we cut our PT to €120/share and downgrade our 2024 & 2025 sales by 5% leaving us 11% below consensus sales in 2025 & 20% below consensus EBITDA in 2026. We have argued for some time & can evidence that trend sales growth for DIM is materially lower than that seen pre-COVID for several reasons: CDMO overcapacity, less M&A upside, improving manufacturing yields, China competition, likely lower market share gains & higher penetration of perfusion bioreactors. Moreover, the significant amount of capacity being added is also likely to lower EBITDA margins in the coming 2-3yrs. We retain our Sell.
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20/06/2024 1 EN

Underlying

Sartorius Stedim Biotech SA

Sartorius Stedim Biotech is a provider of equipment and services for the development, quality assurance and production processes of the biopharmaceutical industry. Co.'s solutions cover fermentation, filtration, purification, fluid management and lab technologies and membrane chromatography, including various conventional lab products to biopharmaceutical laboratories. Co.'s technologies, products and services are used to develop and manufacture medications and vaccines using biological methods. Co.'s products covers all upstream and downstream steps in the production of active pharmaceutical ingredients. It specializes in single-use products and offers technical consulting and services.

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FR0013154002 Euronext Paris France

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Analysts

Dominic Rose

Naresh Chouhan

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