SRH AlsterResearch AG Initiation: Sartorius - Ambition to double revenues in 5 years

Sartorius AG, prefs.
Health Care

Market Cap EUR 25.5bn

HOLD, PT EUR 355.00 (downside 9%)
 

Sartorius AG_initiation

 

Sartorius benefitted greatly in 2020 from its organic strength and effects of the Covid19 pandemic and has strengthened its competitive position through further acquisitions. Given the stellar performance, the board has set a strong outlook for 2021, targeting constant currency sales growth of 19%-25%, with growth across all levels and an underlying EBITDA margin of ca 30.5%. Thus, the group’s increased long-term sales target of EUR 5bn (vs ca EUR 4bn previously) and EBITDA margin of ca 32% (vs ca 28% earlier) by 2025 looks achievable, backed by a dynamic market and its organic as well as inorganic prowess. Despite the rich valuation we start our coverage with a Hold recommendation also reflecting the stellar competitive quality (ROCE c. 17%). Our PT of EUR 355.00 is based on a blended DCF / peer valuation.

 

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