Berenberg upgrades Biomerieux on growth potential

Biomerieux SA

21/03/2024 12:04

** Berenberg upgrades Biomerieux  BIOX.PA  to "buy" from
"hold" as it expects new product launches to drive growth for
the French diagnostics company
    ** It points to a "remarkably strong" Q4 performance of
Biomerieux's new product in molecular infectious disease
diagnostics, SPOTFIRE
    ** The broker also notes continued growth from the
Microbiology and Industrial Applications, and that respiratory
testing should stop being a drag from 2025
    ** The medium-term prospect for the company are
underestimated, the broker says, making high-single-digit
increases to its estimates and hiking PT by 15% to 114.5 euros
    ** The brokers also sees several sources of margin expansion
in the coming years, including operating leverage as the
SPOTFIRE franchise matures, insourcing, and production
automation initiatives
        ** It estimates the company's EBIT margin rising to
18.2% in 2026 from 16.6% it reported in 2023
  
    ** Out of 13 analysts that cover Biomerieux, eight rate the
stock "strong buy" or "buy, "five rate it "hold" and no analysts
rate the stock "strong sell" or "sell"


 (Reporting by Mathias de Rozario)
 ((mathias.derozario@thomsonreuters.com))