Alpha MOS: shares plunge after warning

(CercleFinance.com) - Alpha MOS shares fell sharply on the Paris Bourse on Monday, following a warning issued on Friday evening by the manufacturer of odor and taste analyzers, faced with postponed orders.


At around 10.15 a.m., the share price fell by almost 15%, in a Paris market down 0.5%, and fell back towards its annual lows. The stock is now losing more than 57% this year.

In a press release issued after close of trading on Friday, the electronic nose and tongue specialist announced a downward revision of its annual sales target.

While it was initially counting on accelerated growth this year, the company now expects annual sales to fall to around 4.8 million euros in 2023, compared with 5.8 million last year.

Alpha MOS justifies its warning by the fact that food industry players are postponing investments in the face of a marked downturn in household food consumption.

Several orders expected by the group in the 4th quarter have thus been postponed to the 2024 financial year.

"Our caution and fears about the lack of short-term business visibility have finally proved justified", reacted Euroland's analysts this morning, who consequently downgraded their opinion to 'neutral' from 'buy', with a price target reduced from 2.5 to 1.2 euros.

In its press release, Alpha MOS nonetheless asserts that its growth prospects remain 'intact' for the coming years, notably due to the partnership relations established with several key accounts on a large number of industrial sites.

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