Omicron Fuels Eurofins' Q4 Growth, Though COVID-19 Sales May Have Peaked; Shares Fairly Priced

Eurofins had a solid end to the year driven by robust COVID-19 sales, which exceeded 20% of full-year revenue, though operating costs were a bit higher compared with our pre-earnings expectations. Our narrow moat rating and EUR 80 fair value estimate are unchanged after adjusting our model for slightly less margin expansion, offset by maintaining the U.S. corporate tax rate at 21% and the time value of money. We see the shares as fairly valued.