Morgan Stanley ups DiaSorin to 'overweight' on 'rare opportunity' valuation, shares rise

DiaSorin SpA

26/08/2025 08:38

** Morgan Stanley upgrades Italian medical diagnostics group DiaSorin DIAS.MI to "overweight" from "equal-weight", citing the recent valuation pullback as a "rare opportunity"

** The brokerage believes the stock's YTD share price decline - down 10.87% as of Tuesday - appears oversold and harsh compared to its peers, creating an attractive entry point for investors

** "We see DiaSorin's around 20% YTD valuation pullback as a rare opportunity to own a core European Diagnostics asset with attractive and sustainable midterm growth drivers", the broker says

** MS anticipates earnings headwinds to reverse course in 2026 and says China market pressures, worth about 5-10 million euros ($5.85-$11.71 million) in 2025, should ease to around 2% of group revenues

** It raises its PT by 1% to 101 euros, forecasting organic sales growth will accelerate to 8% in 2026, around 100 bps ahead of consensus, also thanks to its specialty immunoassay portfolio and upside optionality from new Molecular launches

** With an attractive free cash flow yield of 5.3%, MS sees "the valuation discount as unjustified and expects valuation to see a re-rating as growth accelerates and margin expansion potential is sustained over the next 12-18 months"

** Stock is up 2.7% to 88.74 euros at 07:32 GMT after rising as much as 3.1%, highest since July 31

** Out of 14 analysts that cover DiaSorin, seven rate the stock "strong buy" or "buy",​ six rate "hold" and one rates the stock "sell" - LSEG data

($1 = 0.8542 euros)

 (Reporting by Laura Contemori)

 ((Laura.contemori@thomsonreuters.com))