Eurofins Earnings: Strong Growth and Profit Margins; Shares Undervalued

Narrow-moat Eurofins' second-quarter results were better than expected, with reported revenue for the three months of EUR 1.77 billion or 8% year-on-year growth. The half-year revenue of EUR 3.42 billion represents 48% progress on our full-year forecast, which we think is positive given that the second half usually has higher revenue, especially in the fourth quarter. We maintain our fair value estimate of EUR 72 per share and view the stock as cheap after the recent price volatility.