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On Thursday, Deutsche Bank (ETR:DBKGn) analyst Falko Friedrichs upgraded Sartorius AG (ETR:SATG) (SRT3:GR) (OTC:SARTF) stock rating from Hold to Buy, while also adjusting the price target to EUR 270.00, down from EUR 285.00. The upgrade follows Sartorius AG’s first-quarter results, which have led Deutsche Bank to adopt a positive stance on the investment case for several key reasons.
According to Friedrichs, the company’s strong order intake for the second consecutive quarter was a significant factor, with management confirming that these results were not influenced by stocking or pull-forward effects related to tariffs. Additionally, the demand for consumables, which represent 75% of the group’s sales, has returned to normalized high levels.
The new guidance for 2025 was also mentioned as a reason for the upgrade. Friedrichs noted that the guidance seems appropriately conservative based on the earnings call commentary. Furthermore, the potential tariff headwinds appear to be limited, which adds to the positive outlook for the company.
Friedrichs also highlighted the company’s financial health, pointing out that Sartorius AG’s free cash flow should remain robust. This is expected to support the company’s deleveraging efforts, aiming to reduce net debt to 3.5 times adjusted EBITDA within the year, with further reductions anticipated thereafter.
Lastly, the current valuation of the company was cited as attractive. Sartorius AG’s stock is currently trading at 32 times its projected 2026 earnings per share, compared to a historical range of 35 to 64 times over the last five years. This valuation, combined with an expected adjusted earnings per share compound annual growth rate of 19% from 2024 to 2029, underpins Deutsche Bank’s positive assessment.
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