Jefferies sees China as biggest 'swing factor' for lab equipment cos

Mettler-Toledo International

13/09/2023 14:47

** Brokerage Jefferies says every 5% increase/decrease in
China sales growth adds or reduces the medical tools industry's
growth by 60 basis points, adding that the country is the
"biggest swing factor" for the companies in 2024 
    ** Lab equipment makers like Illumina  ILMN.O , Agilent
Technologies   A.N  and Waters  WAT.N  had cut their annual
forecast last month flagging softer demand in China
    ** Jefferies says on average 6 U.S. companies from the
industry had China sales accounting for 17% of their total
revenue in 2022 compared to 14% in 2016
    ** The biggest beneficiaries of China's historical growth
trend have been Mettler-Toledo International  MTD.N , Agilent
and Waters Corp - Jeffries
    ** Shares of several lab equipment makers have fallen in
past few months on growth concerns; Up to last close, Revvity
 RVTY.N , Mettler-Toledo and Agilent shares have dropped more
than 20% YTD
    
 

 (Reporting by Christy Santhosh)
 ((Christy.Santhosh@thomsonreuters.com))