Euroapi plunges after DB cuts to 'sell' on 'disappointing' strategic update

Euroapi SA

05/03/2024 09:03

** Euroapi  EAPI.PA  shares fall around 10% after Deutsche
Bank cuts the French pharma ingredients supplier to "sell" from
"hold" saying its strategic update last week disappointed with a
lack of detail  
    ** Last week, on the day of its FY results on Feb. 29,
Euroapi announced a strategic review including boosting
efficiency, raising some prices, and focusing on high-return
investments 
    ** Deutsche Bank says it attended the strategy presentation
and was "disappointed by the lack of quantitative details on the
FOCUS-27 project," 
    ** "More details on cost-savings targets, financing and
potentially new medium-term targets should be shared during
2Q24, but they are unlikely to induce excitement, in our view,"
the broker adds 
    ** Visibility is low, while restructuring and capex expenses
could result in a need for dilutive financing, adds DB 
    ** It cuts TP by 50% to 3 euros; Euroapi closed at 3.79
euros on Monday 
    ** The shares, currently priced at about 3.4 euros, are
trading near their all-time low of 3.10 euros hit on Thursday 
    
   

($1 = 0.9221 euros)

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))