Diasorin: Confirmation of trends
BUY, Fair Value EUR33 vs. EUR30 (+2%)
DiaSorin released Q2 results that were in line with expectations with sales being flat at EUR113.9m Q2 2012) once again driven by CLIA ex-Vitamin D sales with 11.2% CER growth. Regarding Vitamin D, sales were down 10.8% CER but showed signs of a slowdown in the decrease compared to previous quarters. Despite the drop in Vitamin D, DiaSorin maintained a very sound EBITDA margin at 39.1% ex-investments in Molecular Diagnostics (200bps dilution). Guidance for the full year is confirmed with sales expected to grow 2 to 4% CER (BGe: 3%). Importantly, Liaison XL placements were dynamic in Q2 with 137 instruments installed. We remain buyers of the name as we believe DiaSorin continues to be an attractive equity story which we could be boosted by the perspectives of a strategic partnership later this year. However, we would look for a better entry point given the demanding valuation as well as well the share price performance over 12 months (>50% gain).
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