Bernstein maintains Sartorius stock Underperform rating

Published 28/01/2025, 12:50
Bernstein maintains Sartorius stock Underperform rating

Tuesday, Sartorius AG (ETR:SATG) (SRT3:GR) (OTC: SARTF) stock remained under the scrutiny of Bernstein SocGen Group, as the firm reiterated its Underperform rating and a price target of EUR194.00. The company's recent performance delivered solid results, which, according to Bernstein, could lead to a positive market response based on the fourth-quarter order intake.

The analyst from Bernstein acknowledged the strength of Sartorius AG's results, highlighting the potential alignment with consensus estimates for the year 2025. The company's provided consensus anticipates 7.6% organic growth and a 30.4% EBITDA margin for the Bioprocess Solutions Division (BPS), along with 3.5% organic growth and a 24% EBITDA margin for the Lab Products & Services Division (LPS).

Despite the positive outlook on the recent results, Bernstein expressed reservations about the ambitious goals set by Sartorius AG's management for the year 2028. The company's management has projected an average reported sales growth of 14.1% per year and an average annual improvement of 1.5 percentage points in EBITDA margin. Bernstein finds these targets challenging, considering the market environment and the anticipated biopharma demand recovery starting from 2025.

The firm's commentary suggests a cautious stance on the company's ability to meet its long-term financial objectives. As the market anticipates a biopharma demand recovery, the projected growth rates and margin improvements may prove difficult to achieve against the backdrop of current market conditions.

Investors and market watchers will likely monitor Sartorius AG's performance closely in the coming years to see if the company can deliver on its strategic goals and navigate the evolving market landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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