DocMorris: Strengthening Non-Rx Growth and Balance Sheet Underpin Buy Rating Despite Near-Term Losses

In a report released today, Martin Comtesse from Jefferies maintained a Buy rating on DocMorris, with a price target of CHF12.00.

Martin Comtesse has given his Buy rating due to a combination of factors that highlight DocMorris’s improving operating momentum and growth profile. He notes that the company finished the year with a clear re-acceleration in German non-prescription (Non-Rx) revenues, moving from modest single-digit growth in the first nine months to a solid double-digit increase in the fourth quarter. This improvement is attributed to a particularly intense flu season, which boosted demand, and to more targeted marketing initiatives that became possible after the company strengthened its balance sheet. Although prescription (Rx) revenues are growing only moderately and remain below prior expectations, they still show sequential progress, and the overall topline trajectory is positive.

At the same time, Comtesse acknowledges that profitability remains under pressure, with EBITDA for FY25 still expected to be clearly negative, signalling that the company is in an investment and transition phase. Nonetheless, he appears to view the combination of accelerating Non-Rx growth, improved financial flexibility post-recapitalisation, and ongoing strategic execution as supportive of future earnings improvement. In his assessment, the recent operational trends and the company’s strengthened position in the German online pharmacy market justify a constructive stance on the stock. As a result, he concludes that the risk‑reward profile is attractive enough at current levels to warrant a Buy recommendation on DocMorris.