Balanced Outlook for SGS SA: Hold Rating Amid Acquisition-Driven OptimismSGS (SGSN.S): a more balanced risk / reward 9 October 2025 | 6:24AM BST We upgrade SGS to Neutral from Sell, believing that our previous thesis has mostly played out. We now see a more balanced risk/reward. We increase our 12-month price target to SFr 85 (from SFr 81), implying c.0% upside. We believe there is scope for earnings momentum to inflect, reverting to a positive trend as the company accelerates its M&A program. We note the recently announced ATS acquisition for US$1.325bn (expected to close in late-2025/early-2026 and not yet in our forecasts) which the company expects to be EPS accretive from the first year. We believe that the negative consensus revision trends of recent quarters have weighed on the share price, and would expect this pressure to ease as earnings inflect.