Sartorius Stedim - More Downside to Come (SELL, TP EUR150 [165], 9 pgs)
The capitulation may be upon us. The order book continues to show weakness & contrary to the befuddling Q423 sales strength, equipment sales look likely to stay weak as CDMO’s reduce CAPEX after 3yrs of turbo charged growth. We now question the trend growth rate as we believe that market share gains will be minimal, CDMO CAPEX will recover very slowly & M&A is unlikely to contribute as much as it did in the past. Moreover, we expect DIM to add significant capacity in the coming 24mths, which is unlikely to be optimally utilised and will impact the margin. We are 17% below consensus sales in 2027 and 26% below on EBITDA. We cut our PT to €150 given increasing confidence that the return to growth will take longer (possibly into 2025) & that trend growth is now slower.For access to the full note, please contact Naresh Chouhan ( )
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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