Yannik Siering, an analyst from Stifel Nicolaus, maintained the Buy rating on DocMorris (DOCM – Research Report). The associated price target is CHF40.00.
Yannik Siering has given his Buy rating due to a combination of factors that suggest potential for significant growth in DocMorris’s operations. The company plans to raise approximately CHF 200 million through a capital increase, which is expected to be used for refinancing a convertible bond and investing in Rx marketing. This strategic move is anticipated to enhance the company’s position in the German Rx market, where early indicators show promising customer loyalty and increased order frequency.
Despite a challenging performance in 2024, DocMorris met its revised targets with a 6.7% increase in sales and a slight rise in customer numbers. The introduction of the CardLink digital redemption method has improved customer loyalty and order rates, justifying increased marketing efforts. Additionally, the telemedicine segment has shown strong growth, doubling its sales and achieving significant EBITDA. These factors, along with the potential benefits of the capital increase, underpin Siering’s confidence in the company’s future prospects and justify the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a CHF39.00 price target.