SGS Earnings: Finishing Out 2023 Strongly

Testing giant SGS closed out 2023 strongly, with organic revenue growth north of 8%, despite the slowdown in the consumer sector over the period. That operating margins saw a small decline year over year might be taken negatively by the market, particularly after management had guided to an improvement at the half-year point. Despite this, we are still positive on the stock, and see attractive upside to our CHF 90 fair value estimate.