Qiagen: Expect acceleration in H2 to reach FY guidance, 2014 will benefit from efficiency plan
BUY, Fair Value EUR17 (+9%)
Following Q2 results that were reassuring on sales performance but slightly disappointing in terms of margins, the tone was reassuring during the conference call. Management is expecting a pick-up in H2 both in top-line growth and profitability. Molecular Diagnostics should continue with steady growth (BGe FY13: 7.5% CER) despite continuous pressure on HPV. We continue to see QuantiFeron-TB, Personalized Healthcare and QiaSymphony delivering strong double-digit growth. Other business divisions should benefit from more favourable base effects in H2 as well as a slight rebound following a weak Q1. In terms of margins, management confirmed its target to reach a 28% adjusted EBIT margin as well as positive effects from the efficiency plan in the mid-term. Finally, we are looking forward for more quantitative details on the next-gen sequencing opportunity.
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