Deutsche Bank starts Tecan at 'buy' on positive growth prospects

Tecan AG

24/03/2023 08:39

** Deutsche Bank initiates coverage of Tecan Group  TECN.S 
with "buy" as it sees positive growth prospects for the Swiss
laboratory instruments maker
    ** "We view the company as well equipped to deliver on its
target for sustained, profitable growth going forward," says DB
    ** The brokerage says Tecan is "well positioned" thanks to
its leading position in structurally growing markets and its
initiatives to outgrow underlying end-markets
    ** It adds acquisitions could pose additional upside
potential, given the company's strong balance sheet and
historically beneficial M&A strategy
    ** "Attractive sales growth should be accompanied by volume
leverage, and thus, increased profitability, further supported
by a shift toward a higher share of recurring sales," it adds
    ** The brokerage forecasts 6% CAGR for sales, 9% for
adjusted EBITDA and 10% for adjusted EPS between 2022 and 2027
    ** DB sees good value for investors, with Tecan shares
"trading at 28x 2024E P/E in return for low-teens bottom-line
growth"
    ** Out of six analysts that cover Tecan, five rate the stock
"strong buy" or "buy" and ​one "hold" - Refinitiv

 (Reporting by Anna Mackenzie)
 ((Anna.mackenzie@thomsonreuters.com))