Bachem slips after Baader downgrades stock on staff costs, FX effect

BACHEM HOLDING AG

15/06/2023 09:36

** Shares in Bachem  BANB.S  fall 4.7% after Baader Helvea
cuts the Swiss biochemical company to "reduce" from "add" citing
personnel costs and foreign exchange (FX) challenges
    ** Baader expects the company to increase its staff by 21%
in 2023, with  most new hires to be trained over the course of
the year and ready to work around 2024
    ** The brokerage expects these "unproductive personnel
costs" to weigh on Bachem's 2023 margin, while a potential
negative FX effect of 3-4% in H1 of 2023 will pressure sales and
margin
    ** These factors will "likely navigate Bachem in the
single-digit growth area for 2023E", the broker says
    ** Baader lowers its 2023 EBIT estimate for Bachem to CHF
126.9 mln ($140.4 mln) from CHF 140.1 mln
    ** The stock is at the bottom of the Swiss mid-cap index
 .SMIM 

($1 = 0.9037 Swiss francs)

 (Reporting by Paolo Laudani)
 ((Paolo.laudani@thomsonreuters.com))