Eurofins Earnings: Fair Value Estimate Reduced Mildly, but Results and Guidance Roughly in Line

Narrow-moat Eurofins reported full-year results and forward guidance that were in line with our expectations. However, we are reducing our fair value estimate to EUR 72 from EUR 75, driven mostly by adjustments to our assumptions on price/sales ratios for acquisitions over the next five years and minor tweaks to our growth assumptions. We continue to view shares as moderately undervalued and believe that Eurofins will be able to improve its profit margins over the next 2-3 years while maintaining mid-single-digit organic growth.