(new, extended version)

FRANKFURT (dpa-AFX) - Surprisingly sharply lowered annual targets sent Sartorius shares to a 12-month low on Monday. After the shares of fashion retailer Zalando, they are also now the second-weakest performer so far this year among the 40 companies in Germany's leading Dax index.

In the afternoon, the shares of the laboratory equipment manufacturer from Gottingen lost 15.5 percent to 300.40 euros, which means a drop of almost 19 percent in the course of the year. Since the end of May, the shares had recovered by around 15 percent to a high of just under 362 euros on Friday, breaking the downward trend that began in February. This is now history again.

The Sartorius profit warning itself was no surprise, analysts said in unison, but the magnitude was. Berenberg analyst Odysseas Manesiotis, for example, wrote that the magnitude of the warning indicated that there would be no improvement in the second quarter either. Moreover, the second half of the year will probably be the same as the first. Moreover, Manesiotis' expectation of continued destocking coincides with discussions he has had with Sartorius customers.

Oliver Reinberg of Kepler Cheuvreux now estimates that the average analyst estimate (consensus), based on the midpoint of the new forecast range for annual operating earnings (Ebitda) in 2023, will fall by about 20%. For 2024, the consensus forecast is even expected to be cut in half.

UBS expert Michael Leuchten voiced criticism. As recently as April, during the first-quarter conference call, the annual targets had still been reaffirmed, he complained. "Management was asked several times in the conference call about the underlying assumptions, and the answer was always that the year would go as planned despite the weak first quarter. This proved to be too optimistic."

After all, destocking by customers following the Corona pandemic and generally weak demand weighed more heavily on Sartorius than expected. As a result, the pharmaceutical and laboratory equipment supplier now expects sales revenue to decline in the low to mid-teens percent range in 2023, rather than to grow slightly. The margin based on annual Ebitda adjusted for special effects is also now expected to be around 30 percent. Previously, the figure had been expected to be around the level of the previous year. The operating margin there was 33.8 percent.

However, analysts remain optimistic about Sartorius' medium-term prospects. Although the weak demand is not good news, the company's story in and of itself is intact, wrote Michael Heider of Warburg Research. Triggered by the pandemic, the laboratory equipment supplier had grown very strongly. Now the biopharmaceutical industry seems to have to adjust to a new level. However, the growth drivers remain intact. The population is growing and so is the market share of biologics.

Kepler specialist Reinberg also wrote, "In fact, Sartorius has maintained its 2025 targets, implying extraordinary growth." The plan is ambitious, but "quite realistic." However, Berenberg expert Manesiotis, who also believes the targets are achievable, qualified: However, the market is unlikely to be convinced until the growth in orders is also reflected in the figures. "Therefore, orders in the final quarter of 2023 are likely to be a key indicator to underpin confidence in management's medium-term targets."/ck/la/nas