Company Reports

DiaSorin is a niche player in the fragmented in vitro diagnostic, or IVD, market with specialization in infectious diseases. Its systems can perform tests for a wide range of diseases including hepatitis, tuberculosis, mumps, and measles. Despite operating in a competitive industry with high research and investment requirements, DiaSorin has consistently been able to expand its installed base and deliver strong returns for shareholders over time. The company also benefited from the covid pandemic with a higher installed base and a greater awareness of the importance of IVD testing for respiratory infections.

As we are refreshing our thoughts on DiaSorin, we are reinstating our narrow moat rating. Our fair value estimate is EUR 105 per share, and we view the market price as fairly valued.

We are dropping coverage of DiaSorin. We provide broad coverage of more than 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.

DiaSorin saw strong growth in the second quarter driven by greater-than-expected demand for COVID-19 tests, and while margin declined, this was expected given the dilutive impact of the Luminex acquisition. We are maintaining our narrow-moat rating and EUR 119 fair value estimate.

DiaSorin is a niche player in the fragmented in vitro diagnostic market with diagnostic specialization in infectious diseases. Its systems are able to perform tests for diseases such as hepatitis, tuberculosis, mumps, and measles. Despite operating in a competitive industry with high research and investment requirements, DiaSorin has consistently been able to expand its installed base and deliver strong returns for shareholders over time.

Narrow-moat DiaSorin had a decent quarter (considering tough comparables) with the top line supported by omicron testing tailwinds despite demand for COVID-19 tests trending lower overall. Our EUR 119 fair value estimate is unchanged, and shares appear to be fully valued.

Narrow-moat DiaSorin finished the year with strong growth, though the integration of Luminex has significantly weighed on margins. We are maintaining our EUR 119 fair value estimate and believe the shares are fairly valued.

DiaSorin is a niche player in the fragmented in vitro diagnostic market with diagnostic specialization in infectious diseases. Its systems are able to perform tests for diseases such as hepatitis, tuberculosis, mumps, and measles. The firm maintains a nearly 20% market share in immunodiagnostics and a 12% share in the highly competitive molecular diagnostics market. Despite operating in a competitive industry with high research requirements, DiaSorin has consistently been able to expand its installed base and deliver strong returns for shareholders over time.

Narrow-moat DiaSorin reported another impressive quarter and exceeded our expectations with 50% sales growth and 17% net income growth. We plan to moderately increase our EUR 112 fair value estimate after accounting for ongoing strong results. Because our model includes a weighted average U.S. corporate tax rate of 26%, we would also anticipate an approximate 2.5% increase to our fair value estimate if corporate tax rate increases are excluded from the Build Back Better Act still under negotiation.

Narrow-moat DiaSorin had a strong second quarter and largely met our high expectations with top-line growth of 35% and profit growth of 26%. We maintain our EUR 112 fair value estimate, with strong near-term results offset by our expectation for the U.S. corporate tax rate to rise to a probability-weighted 26%.

DiaSorin started the year with strong revenue and earnings growth, and the company remains on track to exceed EUR 1 billion of annual sales for the first time. We are maintaining our EUR 112 fair value estimate and narrow moat rating.

DiaSorin is a niche player in the fragmented in vitro diagnostic market with diagnostic specialization in infectious diseases. Its systems are able to perform tests for diseases such as hepatitis, tuberculosis, mumps, and measles. The firm maintains a nearly 20% market share in immunodiagnostics and a 12% share in the highly competitive molecular diagnostics market. Despite operating in a competitive industry with high research requirements, DiaSorin has consistently been able to expand its installed base and deliver strong returns for shareholders over time.

DiaSorin is a niche player in the fragmented in vitro diagnostic market with diagnostic specialization in infectious diseases. Its systems are able to perform tests for diseases such as hepatitis, tuberculosis, mumps, and measles. The firm maintains a nearly 20% market share in immunodiagnostics and a 12% share in the highly competitive molecular diagnostics market. Despite operating in a competitive industry with high research requirements, DiaSorin has consistently been able to expand its installed base and deliver moatworthy returns for shareholders over time.

Narrow-Moat DiaSorin reported another strong quarter to end 2020, with full-year sales growth of 27% on a constant-exchange basis and profit of nearly EUR 250 million, a significant increase over the EUR 175 million reported last year. We are leaving our EUR 87 fair value estimate unchanged, though we may increase our fair value estimate after reviewing our future estimates.

DiaSorin is a niche player in the fragmented in vitro diagnostic market with diagnostic specialization in infectious diseases. Its systems are able to perform niche testing for diseases such as hepatitis, tuberculosis, Zika virus, and measles. The firm maintains an 18% market share in immunodiagnostics and a 12% share in the highly competitive molecular diagnostics market. Despite operating in a competitive industry with high research requirements, DiaSorin has consistently been able to expand its installed base and deliver moatworthy returns for shareholders over time.

Narrow-moat DiaSorin reported good third-quarter results that tracked our full-year expectations. We continue to expect the company will end 2020 with record levels of sales and profits driven by COVID-19 molecular diagnostic testing, and we are maintaining our EUR 101 fair value estimate.

Narrow-moat DiaSorin had a good second quarter fueled by COVID-19 molecular and serology antibody testing, with revenue up 8.7% at constant currencies, and net profit up 12.8% to EUR 95 million. We are maintaining our EUR 101 fair value estimate, though we may tweak our model to account for higher-than-expected sales. The stronger results on the top line are likely to be offset by slow immunodiagnostic sales in 2021, and we therefore do not expect a material change to our fair value estimate. Financial guidance remains withdrawn, and we emphasize that DiaSorin still faces a high degree of uncertainty related to both the benefits (COVID-19 testing) and drawbacks (decline in demand for other immunoassays) of the current pandemic.

We are launching coverage of narrow-moat DiaSorin with a fair value estimate of EUR 101 per share. DiaSorin is a niche player in the fragmented in vitro diagnostic market and has diagnostic specialization in infectious diseases, with testing differentiation in tuberculosis, Zika virus, and measles. The firm has an 18% market share in immunodiagnostics (the firm’s largest segment at 75% of sales) and a 12% share in the more competitive molecular diagnostics market (15% of sales). Despite steep competition in diagnostics, DiaSorin has consistently expanded the installed base of its equipment, particularly the higher-throughput Liaison XL analyzer, and has consistently delivered moatworthy returns for shareholders.

DiaSorin is a niche player in the fragmented in vitro diagnostic market with diagnostic specialization in infectious diseases. Its systems are able to perform niche testing for diseases such as hepatitis, tuberculosis, Zika virus, and measles. The firm maintains an 18% market share in immunodiagnostics and a 12% share in the highly competitive molecular diagnostics market. Despite operating in a competitive industry with high research requirements, DiaSorin has consistently been able to expand its installed base and deliver moatworthy returns for shareholders over time.