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Investing.com -- J.P. Morgan has initiated coverage on two in vitro diagnostics players, namely, bioMérieux (EPA:BIOX) and Diasorin (BIT:DIAS), with diverging recommendations, in a note dated Wednesday
The brokerage assigned bioMérieux a “neutral” rating with a €120.5 price target. Analysts describe bioMérieux as a strong business well-exposed to growing markets, forecasting high single-digit revenue growth and double-digit EBIT growth.
Strengths include differentiated products and leading positions in Molecular Biology and Microbiology, which together make up about 75% of group sales.
Molecular Biology, in particular, has been a major growth engine, posting a 10-year CAGR of 23%.
J.P. Morgan forecasts a 9.6% organic sales CAGR from 2024–2028. Still, the positives appear priced in: shares are already up 15% year-to-date and trade at 23.8x FY26E PER, leading the bank to conclude upside is limited in the near term.
In contrast, Diasorin was initiated with an “underweight” rating and a €75.4 price target. Analysts point to structural headwinds, with heavy reliance on immunodiagnostics, where intensifying competition and reimbursement pressures could weigh on growth.
Its molecular diagnostics unit is also viewed as less competitive versus peers such as bioMérieux. J.P. Morgan expects sub-200bps margin expansion from 2024-2027, falling short of Diasorin’s 400bps target.
Despite a 9% share price decline year-to-date, the stock still trades at 20.5x FY26E PER, leaving earnings and valuation risk skewed to the downside.