Dermapharm Holding SE: Strong Q4 Performance and Margin Improvement Justify Buy Rating

Dermapharm Holding SE (DMP – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Fabian Piasta from Jefferies maintained a Buy rating on the stock and has a €49.00 price target.

Fabian Piasta has given his Buy rating due to a combination of factors including Dermapharm Holding SE’s strong performance in the fourth quarter of 2024. The company exceeded expectations with a 7% earnings beat and a 4% sales beat, demonstrating robust growth. Despite a cautious sales guidance for FY25, with projected flat revenue growth, the anticipated improvement in margins to 27.7% suggests a positive outlook on profitability.
Additionally, Dermapharm’s fourth-quarter sales increased by 8% year-over-year, and adjusted EBITDA rose by 13%, indicating strong operational performance. Although the full-year results were largely in line with expectations, the slight exceedance in adjusted EBITDA, supported by Montavit, further supports the Buy rating. These factors, combined with the company’s ability to maintain solid margins despite challenges, underpin the positive recommendation.