By Helena Smolak
Euroapi shares hit a new record low on Tuesday after the company cut its sales growth forecast for 2023 and suspended its medium-term targets to 2026.
At 1244 GMT, the French pharmaceutical company’s shares were down 57% at EUR5.20, after falling as low as EUR4.70 earlier in the day. If maintained until trading close, this would be the company’s worst one-day percentage fall since it began trading last year.
Euroapi said it expected net revenue growth between 3% and 5%, down from 7% and 8% previously. Additionally, it expects its core earnings before interest, taxes, depreciation and amortization margin to come in between 9% and 11%, compared with 12.5% to 13.5% initially indicated, it said.
Euroapi’s downgraded guidance for 2023 and acknowledgment that it is too early to provide a view on its 2024 expectations suggest that next year’s core Ebitda could be around 37% below consensus estimates, JPMorgan analysts said in a research note. Uncertainty over the mid-term outlook looks likely to weigh on the shares, JPM said.
Euroapi explained the slowdown in revenue in 2023 by the changing market environment and said it planned to launch a strategic review to adapt its operating model after a slowdown in sales growth.
Write to Helena Smolak at [email protected]
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