Eurofins: Barclays still says 'overweight'

(CercleFinance.com) - Barclays reiterates its "overweight" recommendation on the share of Eurofins Scientific, along with its target price of 80 euros, in the wake of adjustments to its EPS estimates for the bio-analytical specialist (increased by around 14%, 4% and 1% for 2020-22 respectively).


Following Eurofins' trading update, the broker has increased its estimates for Q4 RT-PCR sales and margin generation. It also incorporates a faster rate of recovery of underlying business in the fourth quarter into its model.

Barclays expects average EPS growth of around 15% p.a. over 2019-23 (before M&A), a period over which the share is trading at multiples that are in line with those of its peers, while the broker considers that a premium is justified over the longer term.


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