Germany's Merck jumps after raised electronics guidance, Sartorius read-across

Sartorius AG

17/10/2024 10:25

** Shares in German health and science technology group
Merck  MRCG.DE  rise as much as 9.1% after it raised the
mid-term guidance for its electronics business ahead of its
Capital Markets Day
    ** It lifts Electronics unit's yearly organic sales growth
target to 5-9% from 3-6%, citing high demand for chips for AI
applications
    ** Merck meanwhile trims the mid-term growth targets for its
Healthcare and Life Science units
    ** Barclays says the guidance cuts were in line with its
expectations, while the "AI-driven lift to Electronics is a
pleasant surprise"
    ** Jefferies analyst Brian Balchin also says the electronics
guidance was a lot better than expected with scope for consensus
upgrades
    ** But Oliver Metzger from ODDO BHF says the shares are
mostly rising on a read-across from German pharma peer Sartorius
 SATG.DE  which rises after it said it saw improved H2; Barclays
analysts also point to that

 (Reporting by Marleen Kaesebier)
 ((Marleen.kaesebier@thomsonreuters.com))