Eurofins Scientific is down nearly 5% in Paris, as Jefferies downgraded its opinion on the stock from 'hold' to 'underperform' and reduced its target price from 70 to 58 euros, judging that the valuation 'looks unattractive' with an estimated adjusted FCF yield of around 2%.

Acknowledging that Eurofins shares have had a difficult 2022, the broker believes that the challenges facing the bio-analysis provider 'could continue into 2023' and sees a risk to consensus in terms of near-term results.

'The risk associated with the French diagnostics budget, laboratory strikes, combined with continued cost inflation and a gloomy outlook for pharmaceutical and food testing, prompt us to become more cautious', he explains.

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