Deutsche Bank announced on Thursday that it had upgraded its recommendation on Eurofins from 'sell' to 'hold', albeit with a price target lowered from €54 to €50.

In a note published in the morning, the analyst acknowledged that the bio-analysis specialist's shares were 'cheap' after a 32% decline this year, which it explained by the downward revision of its annual targets.

The intermediary also points to persistent concerns about the Group's growth, earnings and cash flow.

"Our fears have been clearly stated in the past", recalls DB. These include limited cash flow generation, an unflattering track record in achieving sustainable profitability, and a complex business model that limits operating leverage", he continues.

"We believe that these elements are still in place, but they now seem better integrated by the market", concludes the professional.

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