Cerba - Light at the end of the tunnel? - Positioning

Our analysis is focused on how is Cerba surviving the downturn in tariff cuts in France & Italy and R&D capex budgets in the pharma sector. We have reviewed the Q2 2024 results to better understand the progress on the top line that the company is making in its core medical lab, specialty lab and research divisions. In addition, we have also reviewed the trends in Cerba's cost structure, margins and liquidity for the recent quarter to understand the scope and timing for the evolution of its cash flows. Based on these findings, we have modified our initial view on the capital structure of the company.