Sorin: Solid Q2, plenty of opportunities despite challenging markets
BUY, Fair Value EUR2.4 (+15%)
Sorin released a solid set of results in Q2 with sales at EUR187.7m, growing 2.7% CER, at the high end of guidance (1-3% CER). This was once again driven by opposite trends in Cardiac Surgery (64% of sales, 9.4% CER) with the former cardiopulmonary division (Heart Lung Machines, Oxygenators, Autotransfusion) growing double-digits and mechanical valves being under pressure. The Cardiac Rhythm Management division (36% of sales, -7.3%) declined sharply in line with the market but we expect some recovery in H2. Regarding profitability, EBITDA margin rose to 16.6% (up 90bps) and net adjusted income was EUR14.2m. No change to the full-year guidance. We continue to believe that Sorin has some attractive opportunities in emerging markets (13% of sales, up 30%) as well as new products approvals and margins expansion.
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