AlphaValue has downgraded its opinion on Eurofins Scientific from 'Buy' to 'Add' with a target price lowered from €88.5 to €74.9.
The analyst believes that the valuation reset stems from a revision of the comparable approach, as the former 35% premium applied to all metrics is no longer justified after the pandemic period.
According to the note, the broker is now applying discounts to P/E, EV/EBITDA, and P/B multiples in order to be "more consistent with Eurofins' peer group."
The broker also highlights headwinds in the short term, particularly in BioPharma, while Diagnostics and Consumer & Technology are growing at only low single-digit rates, leaving Life as the only division with strong growth.
Eurofins Scientific SE is one of the world's leading providers of bio-analytical services. The group's services are intended to validate the safety, authenticity, origin, identity, and purity of biological substances contained in the environment (water, air, soil, etc.) and in food, pharmaceutical, cosmetic, and hygiene products.
At the end of 2024, Eurofins Scientific SE owned a portfolio of over 200,000 analytical methods and had 950 laboratories located throughout the world.
Net sales are distributed geographically as follows: Europe (51%), North America (38.3%) and other (10.7%).
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