SRH AlsterResearch AG Update: Sartorius AG - Solid take-off in 2021 – Guidance raised – HOLD

Sartorius AG (update) Health Care MCap EUR 28.2bn HOLD, PT EUR 445.00 (upside 1%) Sartorius_update Sartorius is the ongoing profiteer of the current pandemic. The company benefitted greatly in 2020 from its organic strength and effects of the Covid-19 pandemic and has strengthened its competitive position through several acquisitions in the past. Given the stellar performance, and the now improved outlook for 2021, the company is targeting constant currency sales growth of 35%, with growth across all levels and an underlying EBITDA margin of ca 32%. Thus, the group is well on track to reach its longterm targets as early as this year which include an EBITDA margin of 32%. The stellar competitive quality is additionally reflected in superior ROCEs of 18% eAR. However, valuation looks rich even after upgrading our estimates, triggering an increase in our PT from EUR 355.00 to EUR 445.00 based on DCF. As the stock jumped double digit following the good news flow, we reiterate our HOLD recommendation. For 5 current investment ideas, check our Weekly Screener Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de