Berenberg starts Synlab with 'buy' on solid organic growth, strong market position

Synlab AG

09/09/2022 07:31

** Berenberg has initiated coverage of German medical
company Synlab  SYAB.DE  with "buy" and set target price at EUR
19, citing solid organic growth of the company's underlying
business, strong market position, and potential for M&A 
    ** Berenberg says Synlab is well-placed to achieve more than
3% growth per year in the medical diagnostics market on the back
of share gains and product mix as well as its rising exposure to
higher-growth countries
    ** According to the broker, with more than 500 million tests
performed per year, dense geographic coverage, and a broad range
of services on offer, Synlab  is able to benefit from scale
effects and gain share
    ** Berenberg says that M&A is a core pillar of Synlab's
growth strategy as the company has good track record of
successful acquisitions, so it can raise EBITDA margins by up to
3-5bp through cost synergies and achieve a 7x EV/EBITDA multiple
including synergies
    ** The stock is up 2.8% in early Frankfurt trade
 
 



 (Reporting by Andrey Sychev in Gdansk)
 ((Andrey.sychev2@thomsonreuters.com))