Grifols assumed at Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Thibault Boutherin downgraded Grifols to Equal Weight from Overweight with a price target of EUR 14, down from EUR 16, as the analyst assumed coverage of the stock. Following FY22 results and Grifols’ FY23 guidance implying 12% downside to the consensus FY23 adjusted EBITDA forecast, the market is now pricing in higher uncertainty on the shape of margin recovery and the path to deleveraging and the firm is now modeling a slower gross margin recovery, the analyst tells investors.