Ambu drops to bottom of STOXX as improved guidance lags consensus

Ambu A/S

31/08/2023 09:06

** Shares in Ambu  AMBUb.CO  drop 7.6% after the Danish
medical equipment maker narrowed its outlook towards the upper
end of the range, with consensus already at the top end
    ** It narrows FY 2022/23 organic revenue growth guidance to
6-8%, from 5-8% previously; the current company consensus points
to 7.7% growth
    ** "Given the aggressive valuation of the stock, Ambu is
expected to beat expectations every quarter," so the update
provided was not what the market had anticipated, Carnegie
analyst Niels Granholm Leth says
    ** J.P.Morgan says: "We expect limited changes to consensus
that is already towards the upper end of updated guidance range,
although we note that the mid-point of consensus would imply
some downside risk"
    ** Ambu maintains FY EBIT margin outlook of 5-6%, while the
consensus currently sees 6.1%
    ** The company confirms its preliminary Q3 adjusted EBIT of
DKK 91 million ($13.3 million) reported on July 10
    ** The stock is at the bottom of Europe's STOXX 600 index
 .STOXX , trading at its lowest level since late November 2022

($1 = 6.8413 Danish crowns)

 (Reporting by Agata Rybska)
 ((agata.rybska@thomsonreuters.com))