UBS reiterated its Buy rating on shares of BioMerieux (BIM:FP) (OTC: BMXMF), with a steady price target of EUR129.00. The firm expressed increased confidence in the company following a strong first half (H1) performance and an upward revision of its guidance. The positive results led to a 4% appreciation in BioMerieux's share price, which now trades at 22.3 times the estimated 2025 earnings per share (PE), slightly above the sector by a 3% premium.
The financial institution highlighted BioMerieux as its top midcap selection, attributing its choice to the company's robust research and development (R&D) capabilities.
The recent H1 results and the subsequent adjustment in guidance have bolstered UBS's belief in BioMerieux's potential. The firm's view is that the company's valuation gap has narrowed following the share price increase, yet there remains significant growth potential.
BioMerieux's new point-of-care instrument, SPOTFIRE, was specifically mentioned as a key driver for the company's future growth. UBS suggests that SPOTFIRE's growth potential justifies a 20% premium over the sector average, which aligns with the premium level from 2014 to 2019.
During that period, BioMerieux experienced similar growth dynamics with another market-leading device, BIOFIRE.
The analyst firm's stance is based on the belief that BioMerieux's current market position and its innovative SPOTFIRE product can support a higher valuation.
The company's past performance during periods of comparable market expansion and device leadership is used as a reference point for the current premium assessment.
UBS's reiteration of its Buy rating on BioMerieux reflects a positive outlook on the company's financial health and strategic direction, particularly in the area of R&D.
The firm's analysis points to a promising trajectory for the company, backed by its latest product developments and market performance.
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