Sartorius Earnings: Guidance Confirmed and End to Destocking Is in Sight

Wide-moat Sartorius AG and its bioprocessing subsidiary wide-moat Sartorius Stedim Biotech reported third-quarter earnings broadly in line with our expectations, but more pertinently management signalled an imminent end to the customer destocking that has weighed on sentiment and fuelled uncertainty. This comes after they revised full-year guidance downward at the midyear results, citing an uncertain recovery time line. Both companies’ shares are trading up over 15% intraday as a result. With no changes to our forecasts, we maintain our fair value estimates of EUR 265 and EUR 215 for Sartorius AG preference shares and Sartorius Stedim, respectively.