Bioprocessing recovery on track, despite share price weakness

研报英文原文证据摘录

Bioprocessing recovery on track, despite share price weakness

Goldman Sachs Sartorius AG/Stedim

following 2Q is even more unjustified, in our view. Furthermore, we continue to

believe the underlying biologics market remains in a strong place, which was

supported by management commentary from Danaher (beyond the delay), Thermo

Fisher (both covered by Evie Koslosky), Repligen (not covered) and also Sartorius.

n We see the 1H performance as supportive of the broader bioprocessing recovery

theme. Consumables demand remains robust, supported by strong biologics

demand and double-digit growth in core monoclonal antibody product categories,

with management reaffirming its double-digit FY growth outlook despite temporary

project timing effects. Equipment recovery is also progressing as anticipated,

returning to slight growth in 1H, while the order book supports continued growth

through the remainder of the year. While tariff compensation effects introduce some

uncertainty around reported growth, underlying operational performance remains

on track. Overall, sustained consumables momentum alongside improving

equipment trends reinforces our expectation for stronger bioprocessing-led

earnings growth over the medium term.

n Our 12m price targets decrease by c.1% for Stedim and c.0.5% for Sartorius

Group, following minimal updates to our estimates for FX and impact of the

tariff surcharge compensation. For both, we set our 12-month price targets using a

50:50 blended DCF and EV/EBITDA basis. Our updated 12-month price targets

€228/share (vs €229/share previously) for the preference shares and €190/share (vs

€191/share previously) for the ordinary shares, and we remain Neutral rated on the

shares. For Stedim, our 12m price target adjusts to €208 (vs €211 previously) and we