RBC Capital has initiated coverage on Sartorius AG, listed on the Frankfurt Stock Exchange as SPT: GR and over-the-counter as OTC: SARTF, with an Outperform rating and a price target of EUR295.00.
The firm highlighted the company's resilience and growth in the bioprocessing market, noting that Sartorius has maintained its market shares throughout the COVID-19 cycle.
The analyst at RBC Capital pointed out that Sartorius' revenue growth is now rebounding alongside its peers. Despite this positive trend, the firm observed that Sartorius' shares have significantly underperformed compared to those peers, primarily due to guidance downgrades. This underperformance is seen as providing a potential opportunity for investors.
RBC Capital's analysis suggests that there is more upside potential for Sartorius, especially in its Stedim business, which is noted to have lower gearing.
The firm's positive outlook is based on the structural tailwinds that remain intact within the bioprocessing market, which is seen as a key driver for the company's future performance.
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