On Wednesday, Deutsche Bank (ETR:DBKGn)'s analyst increased the stock price target for BioMerieux (BIM:FP) (OTC: BMXMF) to €130.00, up from €128.00, while reiterating a Buy rating on the stock.
Analyst anticipates robust results for the fourth quarter, projecting a 9% organic sales growth and an adjusted EBIT margin of 16.9% for the second half of the year, which is a 20 basis point improvement. This adjustment represents a 17% organic growth in adjusted EBIT.
Koch's analysis suggests that BioMerieux is on track to reach the upper end of its 2024 guidance. The expected growth in the fourth quarter is believed to be driven by the company’s core growth segments.
These include BIOFIRE non-PP results, which are expected to see a 16% organic growth, SPOTIFIRE with €37 million in revenue, Microbiology with an 8% organic growth, and Industrial Applications also growing organically by 8%. However, Immunoassays are anticipated to continue facing challenges, with a projected decline of 3%.
The analyst highlighted that despite BioMerieux providing an update on placements that offered the best insights into the fourth-quarter results, a strong quarter is still expected. The company's guidance implies that BIOFIRE has effectively reduced its backlog and increased visibility, which should not impact the annual results and the projections for 2023/24.
BioMerieux's stock closed at €112.70 before the analyst's update. The price target raise reflects confidence in the company's performance and its ability to meet future guidance. Koch's commentary underscores the strength in BioMerieux's core segments, which are expected to drive the company's growth and contribute to its financial targets.
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