Oddo BHF downgrades its recommendation on Eurofins Scientific from 'outperform' to 'neutral' and adjusts its target price from 80 to 70 euros 'to take account of a difficult economic scenario and unfavorable short-term momentum'.

Recalling that Eurofins shares fell by around 12% after a weak annual publication and a very conservative communication on its 2023 guidance, notably concerning margin, the research department has adjusted its 2023 estimates downwards.

In its view, the main challenge is to "know when the Group will be able or willing to accelerate price increases to compensate for inflation and boost margins", as Oddo understands that it is currently more focused on gaining market share.

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