Euroapi plummets after outlook cut, mid-term guidance withrawal
** Shares in Euroapi EAPI.PA slumped around 60% to their lowest price ever after the French pharmaceutical company cut its 2023 guidance and suspended its mid-term targets
** The company now expects net sales growth of between +3% to +5% (vs +7% to +8% previously) and core EBITDA margin between 9% to 11% (vs 12.5% to 13.5% previously)
** The stock hit record low of 4.7 euros and today's losses wiped off 643.3 million euros ($679.58 million) from the company's market cap so far; if losses hold it will see its worst day ever
** Euroapi said 2023 net sales slowdown is driven by changing market environment, with pricing pressure for its API Solutions, and delayed projects for its CMDO activities, leading to Core EBITDA margin cut due to lower sales
** J.P.Morgan says the new guidance implies a 3% cut to 2023 consensus revenue expectations and a 25% cut to consensus core EBITDA expectations
** Euroapi said it was launching a strategic review aimed at adapting its operating model and suspendedits 2023-2026 mid-term perspectives communicated earlier this year
** "Given the uncertainty over the mid-term outlook and both revenues and margins, we expect the shares to be down at least in line with the expected 2023 and 2024 Consensus earnings cuts and hence see the shares off 30-35%," JPM adds
** Morgan Stanley cut its target price on the stock by 19% to 10.5 euros
($1 = 0.9466 euros)
Reporting by Clement Martinot
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