Euroapi has announced that it will cease production of all APIs at its Brindisi site, as quality control failures have been identified and are being thoroughly investigated.

Following this announcement, Oddo BHF confirms its Underperform opinion on the share and lowers its target price from E6 to E2.9.

' The duration of this shutdown is not yet known, but management has undertaken to provide the market with a little more visibility during the 2nd quarter', says Oddo BHF.

The Group is suspending its 2024 guidance, i.e. sales declining by between -4 and -7% and a core EBITDA margin of between 6 and 9%.

' We have therefore decided to adjust our estimates downwards by deducting 52 ME from our topline
(only 2 months of sales over the full year of the site taking 2023 into account), which leads us to come out with an 11% drop in sales (compared with -6% init) for a margin now of 5.9% (compared with 7.9% init)' indicates Oddo BHF.

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