Sorin: Many growth opportunities despite challenging markets
BUY, Fair Value EUR2.4 (+18%)
Sorin yesterday held an Investors Day in Milan at which the company detailed several growth drivers such as HeartLink/Connect/Inspire in Cardiac Surgery, SonR in Cardiac Rythym Management as well as the New Ventures projects. Emerging countries which represent currently 15% of sales are set to represent 25% of sales in 2018. At a group level, Sorin guides on a 3-5% topline growth in 2013-2016 and 8-10% in 2016-2018 including the contribution of the New Ventures. Regarding EPS, the 5-year target is to reach >EUR0.20 in the base business. Despite challenging underlying effects as well as an unfavourable FX environment (c.EUR10m expected in bottom line in 2014), we continue to like Sorin for its long-term perspectives on the base business and new ventures as well as management's track record on execution.
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