Euroapi's share price fell by nearly 16% following the announcement that production of all APIs at its Brindisi site had been halted, as quality control failures had been identified and were being thoroughly investigated.

' 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 down 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 site's full year, taking 2023 into account), which leads us to come out with an 11% drop in sales (versus -6% init) for a margin of 5.9% (vs. 7.9% init)' says Oddo BHF.

Oddo BHF confirms its Underperform rating on the share and lowers its target price from E6 to E2.9.

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