On Wednesday, Berenberg made a positive adjustment to its rating on STRATEC SE (SBS:GR) (OTC: SRBZF) stock, shifting from a Hold to a Buy status, and increased the price target to EUR50.00, up from the previous EUR41.00. The upgrade comes after a notable decline in STRATEC's share price, which has seen approximately a 70% drop since the highs of fiscal year 2021.
The firm notes that STRATEC has likely hit a sales trough in its instruments business in the first half of 2024, setting the stage for a potential rebound. Berenberg anticipates an uptick in instrument placement activity over the next 12 months, which is expected to contribute to the company's recovery.
An improving revenue mix is also among the factors that have led to the more optimistic outlook on STRATEC. The management team's earnings enhancement program and stronger utilisation rates from its smart consumables partnerships are also highlighted as key drivers for the anticipated turnaround.
Berenberg forecasts a clear inflection point in STRATEC's performance and outlook, backed by these developments. The firm's analysis suggests that the conditions are aligning for STRATEC to experience a positive shift in its business trajectory.
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