Baader Helvea ups Tecan to 'buy' following strong H1
21/08/2023 08:49
** Baader Helvea raises Tecan to "buy", citing the Swiss lab
equipment maker's rosy revenue numbers and the resolution of
supply issues
** Baader Helvea points to sales figures for H1 2023 rising
by 6.8% on an organic basis in local currencies, even against a
tough baseline of Covid-related sales, beating consensus by
230bps
** Tecan is good value, Baader Helvea says, with the stock
currently trading at 23% discount versus its historical 5-year
P/E median (currently at consensus-based P/E of 27x versus 34x
for the past five years)
** The broker says these multiples should normalise, because
Tecan is exposed to the same trends as the broader industry
** Baader Helvea also backs management to improve
profitability at the same as achieving single-digit organic
growth in the mid-term as supply issues begin to resolve
** "Therefore, the current share price pull-back offers in
our view an attractive entry point for long-term investors", the
broker says
** All eight analysts rate Tecan as "buy", with two at
"strong buy" - Refinitiv
(Reporting by Louis van Boxel-Woolf)
((Louis.vanBoxel-Woolf@thomsonreuters.com))