EU and US could reach trade deal this weekend - Reuters
On Wednesday, Morgan Stanley (NYSE:MS) upgraded Sartorius AG (ETR:SATG) (SRT3:GR) (OTC: SARTF), a prominent player in the bioprocessing industry, from Equalweight to Overweight, while also increasing the price target from EUR275.00 to EUR340.00. The upgrade is based on the anticipation of a bioprocessing industry recovery through 2025, which is expected to result in a re-rating of the company’s multiples to the higher end of their historical range.
The firm’s analysts believe that Sartorius AG is poised to outperform industry growth rates. They predict that the market will recognize the company’s efforts in free cash flow optimization and deleveraging by assigning premium multiples to its shares. The revised price target suggests that Sartorius Group is valued at 26.5 times its estimated 2025 EV/EBITDA, which is consistent with the historical range of 20 to 30 times.
The analysts at Morgan Stanley have expressed confidence in Sartorius’s ability to deliver robust growth and emphasized the significance of the company’s focus on financial strategy. They note that these factors could be key drivers for the market to reward the company with a higher valuation.
The new price target of EUR340.00 is derived from a discounted cash flow (DCF) analysis. This analytical approach underpins the firm’s positive outlook on Sartorius AG’s financial prospects and its position within the bioprocessing sector.
Sartorius AG’s stock performance in the coming months will likely be closely watched by investors, as the company aims to capitalize on the anticipated industry recovery and strengthen its financial metrics as projected by Morgan Stanley.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.