First Berlin – HAEMATO AG Research Update (17/05/2019)

First Berlin Equity Research has published a research update on HAEMATO AG (ISIN: DE0006190705). Analyst Ellis Acklin downgraded the stock to ADD and decreased the price target from EUR 7.60 to EUR 5.80.

Abstract
Full year reporting showed an annualised decline in revenue and earnings. The topline undershot our target by 10% and EBIT fell 23% short of our target after patent expiries and changes in product mix caused a sharp retreat in H2/18 sales. An 80 bps uptick in the gross margin offset some of the topline weakness, and the company remained comfortably profitable with net income of €6m. Management plan to pay out the traditional €0.30 dividend equal to an attractive 6% yield. The balance sheet also remained solid. We lower our outlook on the H2/18 revenue and earnings miss. Our recalibrated DCF model now yields a fair value of €5.8 (old: €7.6). We downgrade the stock to Add (old: Buy).