HSBC prefers Biomerieux as healthcare equipment sector struggles with COVID unwind

Biomerieux SA

29/09/2023 14:46

** HSBC upgrades Biomerieux to "buy" from "hold", as it
prefers the French company amongst European healthcare equipment
makers citing earnings momentum on non-respiratory products
    ** The broker points to general challenging macro conditions
in the healthcare equipment sector, with COVID-19 revenue unwind
as demand drops for in-vitro diagnostic equipments, aggravated
by biotech funding cuts and softness in the China lifesciences
business
    ** Margin declines, lack of flexibility for price increases,
and challenges to normalize growth from first quarter of 2024
are also major risks, HSBC adds
    ** The broker cuts Eurofins  EUFI.PA  to "hold" from "buy"
due to the group's exposure to lab service providers and debates
on pricing power
    ** 50% of Eurofins' sales is from diagnostics and biopharma,
both of which have seen accelerated decline in COVID-19-related
revenues, HSBC explains
    ** HSBC keeps DiaSorin  DIAS.MI , Illumina  ILMN.O , Qiagen
 QIA.DE , Oxford Nanoporetech  ONT.L  at "buy" and Synlab
 SYAB.DE  at "hold"

 (Reporting by Mariana Abreu)
 ((mariana.abreu@thomsonreuters.com))