DiaSorin: Surfing The COVID-19 Wave, Culminating In A $1.8 Billion Acquisition Of Luminex

May 06, 2021 4:00 AM ETDiaSorin S.p.A. (DSRLF) StockLMNX, DSRLF5 Comments

Summary

  • DiaSorin is a world leader in the sale of reagents to laboratories.
  • It converts about 25-30% of its revenue into free cash flow.
  • But that makes the stock quite pricey at a FCF yield of just around 3% and trading at almost 20 times EBITDA.
  • The recently-announced acquisition of Luminex seems expensive, but DiaSorin expects to generate about $55M in synergy benefits.
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COVID-19 Blauw
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Introduction

DiaSorin (OTCPK:DSRLF) is an Italian company and world leader in the in vitro diagnostic area as the company has decades of experience in producing the reagent kits used by laboratories all over the world. By continuously building out its presence

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