UBS upgraded Sartorius preference shares to 'Buy' from 'Neutral' and raised its price target to €300 from €240, citing expected premium growth in biopharma and a recovery in the equipment segment starting in 2027.
The upgrade triggered a sharp rise in Sartorius shares, which surged on Tradegate following the announcement. The Göttingen-based life sciences and biotech group’s preference shares have been under pressure in recent months amid broader market volatility, though the UBS upgrade signals renewed investor confidence.
Analyst Weston at UBS highlighted Sartorius’ positioning in high-margin biopharma as a key driver for the upgrade. The equipment business, which has faced soft demand and supply chain challenges, is projected to stabilize by 2027 as market conditions improve. The analyst’s outlook aligns with expectations of a rebound in capital expenditure from biopharma customers, particularly in North America and Europe.
Sartorius, a supplier of laboratory equipment and consumables, has faced headwinds from macroeconomic uncertainty, including elevated interest rates and geopolitical tensions. Despite these challenges, the company has maintained strong order backlogs in its bioprocessing division, which supports the bullish outlook.
The upgrade follows a period of underperformance relative to broader European equity benchmarks, with Sartorius shares down approximately 15% year-to-date. The revised target of €300 implies a potential upside of roughly 25% from current levels, based on recent trading ranges.
