Eurofins Earnings: Revenue Growth In Line; Shares Modestly Undervalued

Narrow-moat Eurofins’ first-quarter results were decent, with reported revenue growing 5% year on year despite a 1% foreign-exchange headwind and one less public working day. This is in line with our expectations and represents good progress on the company’s objective of approximately EUR 7.125 billion revenue for 2024. We maintain our fair value estimate of EUR 72 per share with the view that margins will improve over the next two to three years. Shares are currently trading at about a 20% discount to this, and we view shares as modestly undervalued.