Eurofins Scientific: Morgan Stanley downgrades stock

(CercleFinance.com) - On Friday, Morgan Stanley downgraded Eurofins Scientific shares from 'equal weight' to 'underweight', reducing its target price from E62 to E58.


In a study of the European business services sector, the analyst points out that the valuation premium at which the stock is currently trading could be justified by a favourable earnings momentum.

On the contrary, he predicts that the situation is likely to worsen before a rebound takes place, due to the unfavourable impact of the economic situation and inflation on organic growth and margins, as illustrated by the recent warnings issued by his peers Sartorius, Charles River and Euroapi.


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