Qiagen: Challenging times but mid-term opportunities still compelling
BUY, Fair Value EUR17 (+13%)
While we acknowledge the market reaction following Q1 (guidance cut, Academia and Pharma weaknesses) and the Ingenuity acquisition (dilutive M&A and no news regarding shareholders’ return), we are still convinced of Qiagen’s growth potential. The Molecular Diagnostics franchise (50% of sales), including Personalized healthcare and QuantiFeron-TB, continues to grow at a steady double-digit growth rate (+11% CER in Q1). With the Ingenuity acquisition, we see increasing interest from investors towards Qiagen’s next generation sequencing offer to be launched in 2013. Therefore, we maintain our Buy rating.
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