Launching Narrow-Moat DiaSorin With EUR 101 FVE; Test Capacity Soarin', but Share Price Too High

We are launching coverage of narrow-moat DiaSorin with a fair value estimate of EUR 101 per share. DiaSorin is a niche player in the fragmented in vitro diagnostic market and has diagnostic specialization in infectious diseases, with testing differentiation in tuberculosis, Zika virus, and measles. The firm has an 18% market share in immunodiagnostics (the firm’s largest segment at 75% of sales) and a 12% share in the more competitive molecular diagnostics market (15% of sales). Despite steep competition in diagnostics, DiaSorin has consistently expanded the installed base of its equipment, particularly the higher-throughput Liaison XL analyzer, and has consistently delivered moatworthy returns for shareholders.