First Read Sartorius AG 2Q‘26 Results - Initial Diagnosis

研报英文原文证据摘录

First Read Sartorius AG 2Q‘26 Results - Initial Diagnosis

Forecast returns

Forecast price appreciation 8.5%

Forecast dividend yield 0.4%

Forecast stock return 8.9%

Market return assumption 7.8%

Forecast excess return 1.0%

Company Description

Sartorius is a German life sciences company headquartered in Göttingen. It supplies and

produces equipment for the manufacture of biologic drugs for pharmaceutical companies

(Bioprocess Solutions/BPS, 80% of sales) and professional laboratory equipment for academia

(Lab Products & Services/LPS, 20% of sales). It has ordinary (c2% free float) and preference

shares (c90% free float) in issue. The BPS division and the filtration business operate as part of

the Sartorius Stedim Biotech (SSB) subsidiary listed in France. SSB is fully consolidated and

74%-owned by Sartorius; the remaining LPS business is fully owned.

Valuation Method and Risk Statement

Sartorius AG company-specific risks include: On the upside (1) stronger industry demand for

bioprocess consumables and equipment than anticipated in UBS forecasts; (2) greater positive

margin leverage than we anticipate as revenues outperform. On the downside: (1) over-

capacity and competition in bioprocess consumables following industry over-investment

during COVID; (2) margin pressures from customer dual sourcing actions and emerging

domestic China competition in single-use biomanufacturing systems; (3) weak demand in Lab

Products from lower biotech R&D investment in the US and China and reduced academic

funding; (4) dependence on inorganic growth to achieve mid-term company targets; and (5)

high balance sheet leverage relative to peers.

Valuation: Our price target is based on a multiple of 12m annualised 2026/27E EBITDA. This is

supported by a DCF framework.