Kepler Cheuvreux takes a breather on Stratec

Stratec SE

12/11/2021 10:02

** Kepler Cheuvreux cuts technology company Stratec
 SBSG.DE  to "hold" from "buy" saying that overall visibility
for 2022 is limited, while the stock trades at peak valuation
levels after surging 112% since the start of the pandemic
    ** The broker says that while the company is a key COVID
beneficiary and the business is generally in good shape, 2022
will be growth transition year
    ** It adds that the new MDx contract will only have a
moderate contribution in 2022 and accretive M&A appears unlikely
short-term
    ** Nevertheless, the fading COVID demand is expected to be
about to offset by growth in the company's underlying business,
leading to flat sales for 2022 in year-on-year comparison, it
says
    ** The broker raises its target price 8% to 139 euros
    ** Out of seven analysts that cover Stratec, three rate the
stock "strong buy" or "buy,"​four rate "hold" and no analysts
rate the stock "strong sell" or "sell"

 (Reporting by Marta Serafinko)
 ((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00))