Deutsche Bank reaffirms its 'sell' recommendation on EuroAPI, with a price target lowered from three to 2.50 euros, following the active pharmaceutical ingredients supplier's update on Wednesday evening on the financing of its medium-term plan.

While the group has reached a non-dilutive agreement for financing from Sanofi, the broker notes that EuroAPI has not provided any explicit medium-term projections on sales or margin, which it regards as a disappointment.

"The company reports only 75 to 80 million euros of further improvement in adjusted EBITDA by the end of 2027 compared with its 2024 base, while growth is expected to remain moderate for the period", adds Deutsche Bank.

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