Vitrolife: High Expectations

• Vitrolife is a company of high quality and significant growth opportunities still remain. With an outstanding track record, the bar is set high, and offers little room for disappointment. • The company saw strong sales growth in the first half of 2017, pushing the share to an all-time high. A weaker-thanexpected Q3 report resulted in a strong reaction, but the share’s recovery was swift and the valuation again witness of high expectations.

• We believe that sales growth in H1’17 was somewhat inflated by short-term effects and believe that investments in new growth opportunities might take some time to materialise. We resume coverage with a fair value (base case) of SEK 620 per share, indicating no upside at current levels. Our bull and bear case are 765 and 425 per share, respectively.

Redeye hereby announces that analyst coverage of Vitrolife is resumed and that research will be published on a continuous basis.