Barclays hikes Synlab as 'achievable' goals tip focus to medium-term

Synlab AG

17/01/2022 13:42

** Barclays upgrades German medical company Synlab  SYAB.DE 
to "overweight" from "equal weight" and raises its price target
by 19% to EUR 25, saying investors' focus should be shifting to
fundamentals as the company's goals look more realistic
    ** Barclays says Synlab's underlying performance has
improved since its IPO, and the broker now sees the guidance as
more achievable with "risks skewed to the upside"
    ** It notes Synlab has exceeded its M&A targets, with
further room for consolidation 
    ** "COVID testing was likely stronger in Q4 sequentially,
with upside risk in 2022E," the broker adds, while also flagging
strong FCF generation into 2023 and "unjustified" discount to
peers
    ** "We now expect investors' focus to shift to the
medium-term story, where we see a defensive and highly
cash-generative business sustainably improving growth
organically as key drivers are accelerated by the pandemic," the
broker says
    ** Out of 10 analysts that cover Synlab, eight rate the
stock "strong buy" or "buy", while ​two have "hold" rating

 (Reporting by Tristan Chabba)
 ((Tristan.Chabba@thomsonreuters.com))