DB downgrades Synlab to 'hold' on margin pressure, shares slide

Synlab AG

14/12/2022 09:01

** Deutsche Bank cuts German laboratory services group
Synlab  SYAB.DE  to "hold" from "buy", citing higher uncertainty
around margin pressures that could be "stronger for longer"
    ** Shares of Synlab slide 6.5% to the bottom of Germany's
small-cap index  .SDAXI 
    ** "Visibility on potential impacts from the inflationary
environment is more limited than we had previously expected,"
the brokerage says, following the softer 2023 margin guidance
the group gave in November
    ** DB adds the regulatory environment has worsened slightly
for the laboratory diagnostics industry in some countries
    ** It says recent statements and actions by some regulators
make it believe pressure from price cuts or lower reimbursement
increases could further burden margins over the coming years
    ** Out of 10 analysts that cover Synlab, eight rate it
"strong buy"/"buy" and ​two "hold" - Refinitiv data
 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))