Eurofins Scientific SE: Turnaround timing troubles – down to Underperform

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Eurofins Scientific SE: Turnaround timing troubles – down to Underperform

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Eurofins Scientific SE

Turnaround timing troubles – down to

Underperform

Rating Change: UNDERPERFORM | PO: 56.00 EUR | Price: 59.34 EUR

Negative EPS revision risk & limited re-rating potential 11 May 2026

The key pillar of Eurofins’ equity story over the last 12 months has been, in our view, the Equity

recovery of Biopharma. As we turn more cautious over the step-up in growth in D&G

(soft NIH funding, soft early-stage pharma R&D spend) and Ancillary (particularly in

Key ChangesCentral Labs), we see a risk of BioPharma’s turnaround being pushed to the right. We

lower our revenue, adj EBITDAS, EPS, and FCF estimates down by 0.6-3.8% FY26-FY28E, (EUR) Previous Current

which puts us c3-9% below VA consensus on FY26/28E estimates. The risk of EPS Inv. Opinion B-2-7 B-3-7

downgrades combined with limited potential for multiple re-rating (AI-related Inv. Rating NEUTRAL UNDERPERFORM

disruptions represent an overhang, in our view), leads us to our downgrade to Price Obj. 64.00 56.00

Underperform (from Neutral). Our PO goes to EUR56 (from EUR64) as we update our 2026E EPS 3.67 3.68

estimates, lower our PE FY26E target multiple to 15x (from 18x) and lower our terminal 2027E EPS 3.94 3.92

margin assumption in our DCF to 14.3% (from 14.8%), see page 6. 2028E EPS 4.40 4.30

2026E DPS 0.71 0.75

BioPharma recovery pushed to the right?

While management expects BioPharma to recover by end-FY26/early-FY27, we see Virginia Montorsi >>

Research Analyst

increasing risk that it is pushed to the right. European TIC peers are seeing soft demand, MLI (UK)

while book-to-bills for US-listed CROs seem to lack sustained momentum. Consequently, 44 20 7996 2921 virginia.montorsi@bofa.com