While Eurofins reported FY18 profitability ahead of the street’s estimates, investors seemingly were not happy on two fronts: lower organic revenue growth (50bp miss vs full-year target due to Q4) and the deterioration in the group’s leverage position. While we will revise our target price downwards, incorporating a more cautious view on the group’s debt problem, we believe that yesterday’s share price drop was more of an overreaction.
06 Mar 2019
High-leverage problem has intensified in FY18
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High-leverage problem has intensified in FY18
Eurofins Scientific SE (ESF:WBO) | 0 0 1.6% | Mkt Cap: 8,723m
- Published:
06 Mar 2019 -
Author:
Mohit Rathi -
Pages:
3
While Eurofins reported FY18 profitability ahead of the street’s estimates, investors seemingly were not happy on two fronts: lower organic revenue growth (50bp miss vs full-year target due to Q4) and the deterioration in the group’s leverage position. While we will revise our target price downwards, incorporating a more cautious view on the group’s debt problem, we believe that yesterday’s share price drop was more of an overreaction.