RBC cuts Biomerieux to 'sector perform' on margin risk

Biomerieux SA

07/05/2025 11:30

** RBC cuts French in-vitro diagnostics firm Biomerieux BIOX.PA to "sector perform" from "outperform" as it sees margin risk not fully reflected in consensus

** Shares in Biomerieux are down 3% at 1002 GMT

** RBC cuts its 2025-2027 contributive EBIT (cEBIT) estimates by 4-9% to reflect the greater FX headwind and potential tariff impacts

** Biomerieux guides for +340bps cEBIT margin improvement in mid-term at constant exchange rate, but RBC says that FX headwinds in 2024 and 2025 could cut that by 190bps, while tariffs with no mitigating measures could remove up to a further 330bps

** Still, the broker notes Biomerieux "remains a high quality business, set up for mid-term growth with market-leading positions and a strong balance sheet for M&A"

** Out of 14 analysts that cover Biomerieux, 11 rate the stock "strong buy" or "buy"​, two rate it "hold" and one rates it "sell"

 (Reporting by Dimitri Rhodes)

 ((Dimitri.rhodes@thomsonreuters.com))