U.S. stocks steady; investors focus on quarterly earnings deluge
Investing.com -- Sartorius (F:SATG) has been upgraded to “buy” from “hold” by Deutsche Bank (ETR:DBKGn), with analyst Falko Friedrichs lowering the price target to €270 from €285.
The upgrade follows the company’s first-quarter results, which showed continued improvement in order intake for a second consecutive quarter.
Deutsche Bank noted that management has seen no signs of artificial demand from tariff-related stocking or pull-forward activity.
Instead, the performance points to a genuine recovery in end-market demand, particularly in consumables, which make up around 75% of Sartorius’ group sales.
In its updated 2025 outlook, Sartorius offered what Deutsche Bank called a "conservative" guidance.
The brokerage interpreted the tone from the earnings call as suggesting limited exposure to tariff headwinds, adding confidence to the forecast.
Cash flow also remains a point of strength. Deutsche Bank expects healthy free cash generation to support Sartorius’ efforts to bring net debt down to 3.5x adjusted EBITDA by the end of 2025, with further improvement beyond that.
Valuation is another factor in the bank’s more optimistic stance. At 32x estimated 2026 earnings, Sartorius is now trading below its five-year historical P/E range of 35–64x.
This discount, combined with an expected adjusted EPS compound annual growth rate of 19% from 2024 to 2029, supports the case for re-rating.
“This was the second consecutive quarter with strong order intake,” said Friedrichs, adding that normalized demand levels and an attractive entry valuation underpinned the upgrade.