Fagron slumps to almost 5-yr lows after U.S. site sales outlook cut

Fagron NV

13/10/2022 10:02

** Shares in Fagron  FAGRO.BR  slump over 9% after the
company published in-line Q3 sales but cut its FY sales target
for its U.S. Wichita site
    ** Fagron reports Q3 sales up at 173 million euros ($167.59
million), roughly in line with an 'undemanding consensus'
according to ING
    ** "The majority of the growth is due to FX effects," KBC
Securities' Jeroen Van den Bossche says, also pointing to some
difficulties in North America region where according to Van den
Bossche, analysts expect the most growth 
    ** According to Fagron, the sales outlook cut is driven by a
combination of syringe shortages and the impact of Hurricane
Ian, which are expected to linger on in Q4 and lead to limited
q/q growth
    ** "We expect Fagron to underperform today," says ING,
pointing out concerns over the company's materially lowered FY
sales target for the sterile outsourcing facility in Wichita (to
$95 mln from $125 mln previously)
    ** ING expects a low single-digit downside to FY consensus
for 2022 and a mid-single digit downside to 2023 consensus
    ** Shares hitting their lowest level in 4 years and 10
months, and heading for its worst day in a little below 4 months
($1 = 1.0323 euros)
 (Reporting by Clement Martinot)
 ((Clement.martinot@tr.com))