Actions taken to improve genetic services

Turnaround in the making

No drama in Q3, case confirmed

Sequential improvements, yet no turnaround

Feedback from ABGSC seminar

Consumables shine in soft Q2

Soft Q2, but no game-changer

Temporary friction in a promising story

Betting on the Horse

Vitrolife (Buy, TP: SEK230.00) - Disappointing start to 2025

Q1 sales undershot consensus by c3% and EBITDA by c11%, with earnings missing across the board. Organic sales growth was c3% (excluding discontinued operations equating to close to 3% of total sales). Divisionally, Technologies saw the largest deviations versus consensus (although it can be volatile quarter to quarter). On the positive side, the lawsuit in the US related to PGT-A has not had any negative impact on those sales. We reiterate our BUY, but have cut our target price to SEK230 (255).

Soft Q1 driven by weak APAC sales

Fear over PGT-A lawsuit overdone

Vitrolife (Buy, TP: SEK255.00) - Growth and margins in focus

We expect market focus on growth (especially within Genomics) and margins. Vitrolife indicated an increase in the sales organisation, and we believe there could be costs associated with the class action suits related to PGT-A in the US. There is a risk the PGT-A turbulence could result in a slow recovery in Genomics growth, although the company said there has been no visible impact on PGT-A demand so far. We reiterate our BUY, but have cut our target price to SEK255 (265).

Executive order to improve IVF access

Vitrolife (Buy, TP: SEK265.00) - Strong Q4 earnings

Q4 earnings were stronger than expected. Sales were in line with our estimate and consensus (c1% above), while adj. EBITDA was c5% higher, driven by a stronger-than-expected gross margin (61.1% versus our 58.4% estimate). Vitrolife is set to exit some markets in 2025 that would hit sales and profitability. We reiterate our BUY, but have lowered our target price to SEK265 (270).

Confirming our case with a strong end to '24

Strong Q4 driven by sales and gross margin

Making the dream come true

Terminating coverage

Vitrolife (Buy, TP: SEK270.00) - A decent end to the year

We believe Vitrolife will end the year with decent growth and healthy cash flow, even though we expect softer earnings than consensus (in line on revenues and c2% below on adj. EBITDA). Growth for Consumables should remain in the low double-digits, while Technologies has tough comparables after a strong Q4 2023. We forecast organic growth in the low- to mid-single digits and reiterate our BUY, but have cut our target price to SEK270 (280).