Goldman Sachs has moved Sartorius Stedim Biotech SA (EPA:STDM) from a "neutral" rating to a "buy", according to a research note dated Monday. The upgrade follows a notable pullback in the stock: Goldman said the shares fell about 15% between mid-January and the end of February, and then declined by a further roughly 9% after that period.
Alongside the rating change the bank set a new 12-month price target of c214 for Stedim, which it said implies about 28% upside from prevailing market levels.
Goldman said it reduced target prices for the broader Sartorius Group by about 10% and for Stedim specifically by 9% to reflect elevated interest rate risks. Despite these cuts, the note argued that the fundamentals of the Biopharma market remain intact. "Despite volatility in the financial markets, we continue to believe there is strength in the underlying Biopharma market," Goldman wrote, citing sales, prescriptions, research and development activity, and manufacturing commitments as supporting elements.
The research team added that the stock's year-to-date performance "does not reflect the underlying market dynamics, and overpenalises Stedim for Life Science sectorwide concerns," and they highlighted expectations for bioprocessing market growth of 7-9% across key areas.
On the earnings and divisional outlook, Goldman lowered forecasts for the Life Science Products (LPS) division. The brokerage cut LPS revenue estimates by 2-6% and trimmed core EBITDA forecasts by 11-19% for the 2028-2030 period. For Stedim overall, Goldman said it reduced core EPS forecasts by 5-7% over the same timeframe, attributing that downgrade to higher amortisation charges.
Despite the forecast reductions, Goldman kept its medium-term top-line view unchanged: it still expects Stedim revenue to grow at a compound annual growth rate of 10.8% between 2027 and 2030, the same rate as in prior estimates. The bank also projects core EBITDA margin expansion of 70-80 basis points per year in the mid-term.
Goldman noted valuation context as a factor in its upgraded stance, saying the stock is "currently trading towards trough multiples" observed during the interest rate hiking cycle. The note concluded that recent price declines indicate bioprocessing growth is "no longer fully reflected in the shares."
Overall, the brokerage's action balances nearer-term risks tied to interest rates and amortisation against what it sees as resilient biopharma demand and sustained revenue growth potential for Stedim.