Jefferies analyst Fabian Piasta maintained a Buy rating on Dermapharm Holding SE today and set a price target of €49.00.
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Fabian Piasta has given his Buy rating due to a combination of factors that highlight Dermapharm Holding SE’s financial resilience and growth potential. Despite a slight decline in overall group sales by 3% in the second quarter, the company has shown robust performance in its Branded Pharmaceuticals (BP) and Other Healthcare Products (OHP) segments, with growth rates of 6% and 4% respectively. This growth in key areas has helped offset the strategic reduction in Parallel Import (PI) sales, which saw a significant drop of 30%.
Moreover, the company’s adjusted EBITDA increased by 4% to €66.7 million, resulting in an improved margin of 24.5% compared to the previous year’s 23.0%. This increase is largely attributed to the strong performance in the BP segment, particularly in international markets and allergology, which achieved a margin of 42.4%. Additionally, Dermapharm’s operational cash flow and free cash flow have seen substantial improvements due to reduced working capital demands. The management’s confirmation of the FY25 guidance, which anticipates flat revenue growth in the second half but an acceleration in adjusted EBITDA towards a 10% increase, further supports the positive outlook for the company’s financial performance.
Piasta covers the Industrials sector, focusing on stocks such as Vossloh, Befesa S.A., and BELIMO Holding AG. According to TipRanks, Piasta has an average return of 32.3% and a 74.29% success rate on recommended stocks.