Fabian Piasta, an analyst from Jefferies, maintained the Hold rating on Dermapharm Holding SE. The associated price target remains the same with €34.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Fabian Piasta has given his Hold rating due to a combination of factors that reflect both challenges and opportunities for Dermapharm Holding SE. The company’s CFO, Christof Dreibholz, highlighted that the fiscal year 2025 is expected to be a transitional period, with overall group sales growth stalling. This is partly due to the underperformance of Arkopharma and strategic changes in the Parallel Import Business, which contribute to a cautious outlook.
Despite these challenges, Dermapharm’s core Branded Pharma business is experiencing growth, with mid- to high-single-digit organic growth and improvements in its already strong margin profile. The company is also expanding its international presence across key therapeutic areas. Management remains confident about achieving a 10% adjusted EBITDA growth, although this requires a significant step-up. The shift in Arkopharma’s sales strategy from a B2C to a B2B2C model, focusing on engaging pharmacists, is a strategic move to address previous underperformance, yet it adds to the cautious tone of the outlook.
In another report released on September 3, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a €35.00 price target.