UBS upgraded Sartorius AG and its French-listed subsidiary Sartorius Stedim Biotech to "buy" from "neutral" on Wednesday, citing an expected rebound in bioprocess equipment demand driven by structural industry shifts.
The broker raised its price target for Sartorius AG to €300 from €240, implying a 27.8% upside from the stock’s Aug. 19 close of €234.70. Sartorius Stedim Biotech’s target was lifted to €260 from €220, suggesting a 42.2% gain from its Aug. 19 close of €182.90. Shares of both companies advanced roughly 4.5–4.7% in early trading.
UBS forecasts compound annual growth of 10.8% in bioprocess solutions revenue for both companies between 2027 and 2031, outpacing a peer average of about 8% in EBITDA growth. The broker also raised its 2028–2031 sales and core EPS estimates for Sartorius AG by an average of 3%, positioning its forecasts roughly 3% ahead of the ValueAct consensus on sales and core EPS.
For Sartorius Stedim Biotech, UBS’s EBITDA and core EPS estimates sit about 2% and 4% above consensus, respectively. The firm also raised its target premium for the bioprocess equipment sector’s EV/EBITDA multiple to 20% from in-line, reflecting improved structural demand dynamics.
The recovery is expected to unfold in distinct waves, beginning with brownfield capacity expansions in late 2027 through 2028, followed by greenfield new facilities in 2028 and 2029. UBS attributes the shift to President Trump’s 2025 push to onshore U.S. biomanufacturing, which disrupted prior construction timelines, and the repurposing of COVID-era supply capacity in 2023–2024.
Longer-term demand drivers include an aging population, a high share of biologics in biopharma R&D pipelines, and the anticipated launch of multiple blockbuster biosimilars between 2028 and 2032, according to UBS.
