Sartorius: Fair Value Estimates Revised Downward, but Long-Term Growth Story Remains Intact

We are transferring coverage of Sartorius AG and its bioprocessing subsidiary Sartorius Stedim Biotech, or SSB. We maintain our wide moat ratings for both companies due to the high regulatory hurdles of validated biomanufacturing and Sartorius’ excellent reputation for single-use technologies. However, we are reducing our fair value estimates on both companies due to our higher long-term cost of sales assumptions. For Sartorius AG, we revise our fair value downward to EUR 295 per preference share from EUR 315 previously. For SSB, we revise our fair value to EUR 240 per share from EUR 287.