First Berlin – HAEMATO AG Research Update (09/09/2019)

First Berlin Equity Research has published a research update on HAEMATO AG (ISIN: DE0006190705). Analyst Ellis Acklin upgraded the stock to BUY but decreased the price target from EUR 5.80 to EUR 4.80.

Six month reporting showed revenue and EBIT down 35% and 85% respectively. The topline undershot our target by 18% and EBIT missed our estimate by 79%, due to the revenue shortfall and a lower than expected other income result. On a positive note, the gross margin of 8% remains at a historically high level, thanks to an improved product mix after the company culled the portfolio of low margin products in H2/18. We lower our outlook on the H1/19 revenue and earnings miss but believe we are approaching a trough in sales. Our recalibrated DCF model now yields a fair value of €4.8 (old: €5.8). We upgrade the stock to Buy from Add given the upside to our price target after the recent share price depreciation.