On Thursday, Wolfe Research initiated coverage on Sartorius AG (ETR:SATG) (SRT3:GR) (OTC: SARTF), a company specialized in bioprocessing solutions, with an Outperform rating and a price target set at EUR265.00. The firm highlighted the company's strong position in the bioprocessing industry, noting its 80% exposure to the sector and leadership in various unit operations.
The analyst from Wolfe Research pointed out that Sartorius AG offers a low-risk investment opportunity within the bioprocessing field, due to its minimal customer concentration and limited exposure to new modalities, which accounts for only 10% of its business.
This positions the company as a nearly unique option for investors seeking to engage with a scaled bioprocessing entity without the risks associated with investing in a single molecule or modality.
The coverage suggests a potential 10-15% upside for Sartorius AG's shares over the next year. This optimistic forecast is supported by a Discounted Cash Flow (DCF) analysis, which anticipates improvements in visibility and expectation-setting, recovery in the bioprocessing sector, and benefits from increased scale leading to margin expansion and earnings growth.
The analyst's commentary also drew a comparison between Sartorius AG and other companies in the sector, implying that Sartorius provides a similar value proposition to some of the best offerings from competitors like Danaher (NYSE:DHR) and Repligen (NASDAQ:RGEN), but at a more attractive price point.
This assessment positions Sartorius AG favorably for investors looking for exposure to the bioprocessing industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.