Incrementally Better

Research evidence excerpt

Incrementally Better

Idea

July 23, 2026 09:37 PM GMT

Morgan Stanley & Co. International plc+MSartorius AG | Europe Thibault Boutherin

Equity Analyst

Incrementally Better Thibault.Boutherin@morganstanley.comSarita Kapila +44 20 7425-9688

Sarita.Kapila@morganstanley.com +44 20 7425-1320

Another quarter of positive underlying trends not rewarded by Adithya Venkat

the market; valuation remains constrained by macro and mixed Research Associate

Adithya.Venkat@morganstanley.com +44 20 7425-2216

perception of the tools space. With valuation at a discount to

history and peers despite improvement in the softer parts of the Sartorius AG (SATG_p.DE, SRT3 GY)

Pharmaceuticals | Germany

business (LPS, China, equipment), we remain Overweight.

Stock Rating Overweight

Industry View In-Line

Q2'26 results have improved visibility and provided some reassurance on the Price target €300.00

underlying dynamics of the bioprocessing industry, in our view. Danaher's Q2'26 Shr price, close (Jul 23, 2026) €221.80

52-Week Range €267.70-175.95

miss and downgrade of FY26 bioprocessing guidance earlier in the week (see note Mkt cap, curr (mn) €7,593

Net debt (12/26e) (mn)* €3,170

from our US team here) increased market scrutiny on Sartorius BPS performance

EV, curr (mn)* €12,258

into the quarter. Repligen pre-released strong preliminary Q2'26 results (+12-13%

* = GAAP or approximated based on GAAP

Q2'26 organic growth) and TMO also reported "excellent quarter" for bioprocessing

Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

with continued strong growth momentum. This, combined with SRT's solid Q2'26

Sales / Revenue 3,538 3,729 4,085 4,487

bioprocessing underlying sales growth (+8.4% adjusted for tariff surcharge refund) (€mn)**

EBITDA (€mn)** 1,052 1,126 1,263 1,420