Eurofins’ stock price jumped >10% today as its H1 performance and upgraded FY2021 guidance was ahead of market expectations. The core offerings continued to accelerate with the relaxation of restrictions in Q2, while COVID-19-related revenue subsided sequentially. EBITDA margin benefited from accretive COVID-19 volumes and improved utilisation of start-up laboratories. We will raise our financial estimates and target price. However, we will retain our cautious recommendation; also pinned down by
Companies: Eurofins Scientific (ERF:EPA)Eurofins Scientific Societe Europeenne (ERF:PAR)
April was another impressive month for Eurofins with sustained COVID-19-related revenue and accelerated organic growth momentum in the core business, aided by soft comparables. In ytd FY2021 (to April), the group registered organic growth of c.50% yoy. We will revise our financial estimates and target price upwards to incorporate the strong trading update. However, we reaffirm the cautious stance given the expensive valuation.
Eurofins continued its strong showing with 44.3% organic top-line growth in Q1, building on its robust performance in the second half of last year. The share price came under pressure on the back of qoq lower revenue from COVID-19 clinical testing and reagents, whilst core offerings grew at 10% despite the lockdown measures in key geographies. Management maintained its financial guidance for now, but 2021 appears to exceed the financial objectives materially.
Eurofins reported strong FY2020 results, underpinned by robust demand for its COVID-19 testing solutions and continued recovery in core businesses. Pandemic-related opportunities have not only been a boon to the top line but were also accretive to profitability and cash flows. While management largely retained its near-term guidance citing uncertainties, 2021 could be materially higher if demand for testing is maintained. The dividend was also resumed with a proposed €0.68/share, significantly h
Eurofins clocked a better-than-expected performance in Q3 FY20, lifted by its broad COVID-19 testing portfolio and a gradual recovery in the core operations. While the management has left its FY20 and FY21 objectives unchanged, it expects to beat them significantly, as testing demand is likely to be sustained in the near-term. Dividend payments are also expected to resume next year.
Companies: Eurofins Scientific Societe Europeenne
Eurofins Scientific reported strong H1 FY20 results with a resilient top-line and a significant improvement in profit margins. Moreover, the robust FCF generation and equity issuance proceeds helped the group to cut its leverage considerably and move forward its 2.5x net debt / adjusted EBITDA target by a year to the end of FY20. Also, as management expects robust demand for the COVID-19 testing over the coming few months, it has maintained its FY20 revenue and adjusted EBITDA targets.
Eurofins displayed good resilience in Q1 FY20, supported by the food and pharma businesses. Although, the Q2 FY20 performance is likely to be soft, due to the widespread lock-downs, management has maintained its full-year organic growth targets – a robust demand for its COVID-19 testing solutions in the coming months is expected to compensate for the loss in existing businesses. Moreover, the curtailed capex, M&A and operating spending should provide it with sufficient liquidity to navigate thro
A good set of FY19 results from Eurofins Scientific – barring the cyber-attack impact, the company performed satisfactorily against its financial targets. Its progress on the deleveraging front was also noteworthy, besides the curtailed M&A spending. Management remains confident about sustaining the positive momentum in FY20 and FY21. Regarding the Coronavirus, no material effect has been seen yet.
Eurofins reported reassuring top-line growth in Q3 FY19 – the performance was spread across all geographies except for the UK. The growth is likely to be sustained in Q4 FY19, in our opinion. However, what remains concerning about this company is its highly-leveraged position and thin free cash flow. A faulty execution of the improvement plan will hamper investors’ confidence in the stock.
In H1 19, Eurofins clocked a strong top-line performance – though organic growth was slightly behind the street’s estimates, the inorganic expansion nudged it up. More importantly, management estimates the cyber-attack consequences to be insignificant for the company. It has maintained the full-year financial guidance, adjusting for the incident-caused losses. No material change in our estimates.
Eurofins reported a cyber-attack on its IT systems a few days back. The recovery work is ongoing and no unauthorised theft or loss of confidential client data has been reported to date. Although there is no clarity on the financial impact so far, management has alluded to it being ‘material’. We attempt to estimate this loss in a scenario-based model, but conclude that the share price correction was an overreaction.
Despite a tad soft Q1 FY19, Eurofins remains confident in achieving its full-year financial targets. Though clinical diagnostic business’ problems continued in the quarter (regulatory headwinds in the US and France), Food and Environment testing segments remained healthy. No material change in our financial estimates. Our stock recommendation ‘Add’ is likely to be maintained.
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.
The company reported H1 FY18 results which were in line with our estimates. Recently, the company upgraded its revenue guidance, resulting in a significant jump in the stock price (up 16% in two trading sessions), post which the higher leverage level and significant integration risk wiped out most of these gains. The company successfully raised €550m at 1.38% (vs the average cost of debt of c.3.5%, which should fall further in the near future). We have tweaked our estimates slightly. No change i
The company reported Q1 18 numbers which were below our estimates as well as market consensus. North America, Germany and Belgium & the Netherlands, accounting for half of its revenue (approximately), remained either in line or surpassed its projected growth, whereas France remained subdued and the UK & Ireland recorded negative growth. The company continues with its shopping spree, adding further to its execution risk. We have revised our estimate downward, changing our recommendation from ‘Ad
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TMT Acquisition (TMTA.L) has joined the Main Market (Standard) pursue opportunities to acquire businesses in the technology, media and telecom sector. Raised £5m, mkt cap £5.5m.
NMCN Plc has left the Main Market (Premium) following the appointment of administrators.
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Cambria Autos has left the AIM following a takeover.
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Light Science Tech Holdings, the controlled environment agriculture technology and contract electronics manufacturing Group to join AIM. Raising £5m. Expected mkt cap £17.4m. Due 15 Oct.
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SEAL Advisors working in partnership with Oberon Capital is pleased to announce the publication of a briefing note on the MyHealthChecked plc.
The Future of Personal Health Care
Agile and responsive leadership has delivered a competitive array of MyHealthChecked branded COVID-19 testing products in a very short period of time
Over the past 12 months the company has been transformed from loss making and cash consumptive, to a high-growth, cash generative business
On the basis of repo
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Danakali has left the main market (Standard).
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The current situation in the CDMO arena looks a bit like an arms race and Lonza seems to have firm plans to be part of it. The recently updated mid-term guidance is the explanation to do so, in our view. Management is strongly dedicated to staying with the extraordinary high EBITDA margin for the coming years.
Lonza’s hybrid investors day was well attended in Zurich, in which we participated.
Companies: Lonza Group (LONN:VTX)Lonza Group AG (LONN:SWX)
The positive market research results for Eroxon®, released this morning, provides further support for the company’s ongoing partnering efforts. We continue to believe that MED2002 is a differentiated product with significant potential in both prescription and OTC markets, and look forward to further PK data followed by Phase III start in H1 2018.
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