CellaVision: Undisputed market leader - Berenberg starts at "buy"
30/09/2020 09:28
** Berenberg initiates coverage of Swedish medical company
CellaVision CEVI.ST with "buy" rating and PT of SEK 400,
citing strong growth potential, sending its shares (+11.8%) for
the best day in over a year
** Broker says the company is the undisputed market leader
in digital cell morphology systems, with over 95% market share
** "We think there is strong growth potential in the years
to come and expect CellaVision to lead the digital disruption
of in-depth haematology analysis, strengthening its position as
the leading standard," broker adds
** Berenberg believes the company offers an attractive
returns profile, due to its indirect sales model and outsourcing
on the majority of production
** Berenberg expects a dividend payout ratio of over 30%,
supported by high FCF generation
** Broker forecasts EBITDA margin growth of 35.5% in 2025,
up from 31.8% in 2019
((Tommyalexander.lund@thomsonreuters.com))