Narrow-Moat SGS Passes the Test in 2021

Narrow-moat testing giant SGS published a solid set of full-year results, with revenue up almost 9% organically, and net profit within touching distance of precoronavirus levels once again. Added to this, the company was active in the acquisition space, taking advantage of market disruption to bolster key areas such as cybersecurity, food, and auto-testing. With numbers broadly in line with our expectations, we do not anticipate any major changes to our forecasts, nor to our CHF 2,230 fair value estimate. Despite the nearly 20% fall in the share price in 2022, we still view the shares as slightly overvalued.