Sartorius Aktie: Bulls Must Start Stepping on the Gas

Sluggish Growth

The Sartorius share has recently been unable to keep up with the general market trend. While the DAX has gained around 6% since the beginning of the year, the shares of the Göttingen-based laboratory equipment manufacturer have only climbed by 2.5%.

Weak Q4 Figures

The reason for the share's weakness could be the company's weak fourth-quarter figures. While sales increased by a solid 11.7% to EUR 570.1 million, earnings before interest and taxes (EBIT) declined by 6.3% to EUR 122.0 million. The EBIT margin thus fell from 22.0% to 21.4%. The decline in margins was mainly due to the high costs of raw materials.

Analysts Remain Optimistic

Despite the weak quarterly figures, analysts remain optimistic about Sartorius. The average price target of analysts is currently EUR 420.00, which is around 10% above the current share price. Analysts expect the company to benefit from the long-term growth trend in the laboratory equipment market.

Growth Drivers

The main growth drivers for Sartorius are the increasing demand for laboratory equipment in the pharmaceutical and biotechnology industries. The company is also benefiting from the trend towards personalized medicine, which requires more sophisticated laboratory equipment.

Risks

However, there are also some risks that investors should be aware of. One risk is that the company could be affected by a slowdown in the global economy. Another risk is that the company could face increased competition from Chinese manufacturers.

Conclusion

The Sartorius share is currently trading at a relatively attractive valuation. However, investors should be aware of the risks before investing in the stock. The company's weak fourth-quarter figures are a cause for concern, but analysts remain optimistic about the company's long-term prospects.