Berenberg initiates 'well positioned' EUROAPI with 'buy'

Euroapi SA

18/04/2023 07:53

** Berenberg starts coverage of EUROAPI  EAPI.PA  with
"buy", saying the now independent company will have more room to
"focus on higher-margin products"
    ** The broker sees EUROAPI, the drug ingredients business
spun off from Sanofi  SASY.PA , expanding beyond its
well-established small-molecule active pharmaceutical
ingredients (API) manufacturing activity and making waves in
contract development and manufacturing organisation (CDMO) in
the near future
    ** "As a standalone entity, EUROAPI has placed the
development of its CDMO segment at the core of its new strategic
plan and it aims to become one of the top-five leading companies
in the industry", it explains
    ** Berenberg forecasts that EUROAPI will benefit from
above-market growth and be able to improve its core-EBITDA
margin up to 20% by 2026
    ** Berenberg sets PT at 16.90 euros, 54% above the stock's
Monday closing price of 11.04 euros, as it argues that the
company's current valuation "is unwarranted given the quality of
the business"
    ** Out of seven analysts, one rates the stock "strong buy",
five "buy" and one "hold"

 (Reporting by Victor Goury-Laffont)
 ((Victor.goury-laffont@tr.com))