Still some way to go to restore profits
TARGET CHANGE
CHANGE IN EPS
2016 : € -0.14 vs -0.14
2017 : € -0.05 vs -0.02 ns

We have revised down our forecasts on the back of rather disappointing H1 results. The somewhat weak top-line and a less favourable mix led the group to post a loss, despite the capital gain on Alpha Mos. Of course, things could revert quickly and one should not judge the group on 1-2 quarters, but it will take more time than initially thought to restore the group’s profitability and reach significantly better margins.


CHANGE IN DCF
€ 2.21 vs 2.89 -23.6%

Our DCF valuation goes down with the revision of our earnings forecasts. We still believe the group should be able to reach a 10% EBITDA margin level over the long run, but this will probably take more time for DMS to achieve this, despite the contribution to come from new segments (Wellness and Biotech).