Sartorius AG: Q1 24 results a mixed bag. 2024 outlook confirmed; mwb research confirms to SELL

Sartorius' Q1 revenues fell short of consensus, declining 8% yoy on a constant currency basis (c.c.), due to weakened demand in China and strong comps. Also order intake was a miss, while being up 8% yoy. However, adj. EBITDA was better than market expectations, still being down 14% yoy. As before, management cautioned about its clients' reluctance in China and, to some extent, in Europe, to invest, dampening order bookings for its equipment business. On the positive side, orders in consumables are recovering well. Management expects customers to continue destocking in H1; however, momentum is likely to pick up pace in H2. For 2024, it confirmed its guidance for mid-to-high single-digit yoy growth in revenues and underlying EBITDA margin improvement to slightly above 30%. After a slow start in Q1, mwb research's analysts believe that EBITDA margin targets above 30% are more ambitious than likely. The experts reiterate their SELL rating as valuations appear stretched and maintain their DCF-based target price of EUR 240.00. The full update can be downloaded under research-hub.de/companies/Sartorius%20AG