DocMorris (DOCM – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Aisyah Noor from Morgan Stanley maintained a Hold rating on the stock and has a CHF22.00 price target.
Aisyah Noor’s rating is based on a combination of factors that reflect the current financial and strategic position of DocMorris. The company announced a planned capital increase of approximately CHF 200 million, which is intended to support its midterm growth investments in the prescription (Rx) market and to refinance a convertible bond due in 2026. This move, while necessary, may be perceived negatively by investors due to the company’s weaker sales performance in recent quarters and a profit warning issued in mid-2024.
Aisyah Noor also notes that the outlook for DocMorris remains uncertain, particularly as the company faces competition from peers like RDC in the German Rx market, especially with the ongoing rollout of ePrescriptions. Although DocMorris has seen a significant increase in new Rx customers, the lack of a comprehensive FY25 outlook adds to the uncertainty. The preliminary financial results for the second half of 2024 showed a gross profit and adjusted EBITDA that were broadly in line with consensus, but the overall financial performance has been impacted by increased marketing expenses and strategic investments.
Noor covers the Healthcare sector, focusing on stocks such as Medacta Group SA, Qiagen, and Tecan Group AG. According to TipRanks, Noor has an average return of 1.4% and a 52.63% success rate on recommended stocks.
In another report released today, Warburg Research also maintained a Hold rating on the stock with a CHF33.00 price target.