Analyst Fabian Piasta from Jefferies maintained a Hold rating on CompuGroup Medical (0MSD – Research Report) and keeping the price target at €22.00.
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Fabian Piasta has given his Hold rating due to a combination of factors impacting CompuGroup Medical’s financial performance and strategic outlook. The company’s preliminary results for FY24 indicate a modest 4% organic growth in the fourth quarter, but a significant 20% year-over-year decline in adjusted EBITDA to €55.4 million, leading to a reduced margin of 17.9% compared to the previous year’s 22.6%. Additionally, the FY24 revenues of €1,154 million fell slightly below the company’s revised guidance range, and the adjusted EBITDA was at the lower end of expectations.
Another factor influencing the Hold rating is the company’s decision to propose a dividend cut to the legal minimum of €0.05, a sharp decrease from the previous year’s €1.00. Furthermore, the announcement of CVC acquiring a 21.85% minority stake, with the founding Gotthardt family maintaining its majority, introduces uncertainty as the transaction is expected to close in the second quarter of 2025, followed by a potential delisting. These elements collectively suggest a cautious outlook, justifying the Hold rating.