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.
DiaSorin has niche expertise in infectious diseases, especially immunodiagnostics where it is a leader in chemiluminescence platforms, and is building its position in molecular diagnostics.
Bears
Near-term margins have been under pressure due to various factors, including launches of new products, the integration of Luminex, inflationary pressures, and elevated research and development costs.
DiaSorin, headquartered in Italy, is a global provider of in vitro diagnostics, or IVD, which refers to testing done on samples taken from the human body, such as blood and tissue. DiaSorin produces and markets testing reagent kits for immunodiagnostics (about 65% of total sales) and molecular diagnostics (about 20%) and has a total installed base of about 9,000 diagnostic systems. Instruments and other revenue contribute about 15% of total sales. DiaSorin’s largest market in 2023 was North America, which accounted for 48% of non-covid revenue, followed by Europe (35%) and the Rest of the World (18%).