Fabian Piasta Reiterates Hold Rating and Keeps $34 Price Target as Improved Profitability Aligns With Expectations

Analyst Fabian Piasta of Jefferies maintained a Hold rating on Dermapharm Holding SE, retaining the price target of €34.00.

Fabian Piasta has given his Hold rating due to a combination of factors, including a modest earnings and sales beat alongside maintained guidance, which together suggest a solid but not aggressively improving outlook. Revenue growth was limited, with strong double-digit expansion in branded pharmaceuticals helped by both organic momentum and recent deals, while weakness in Arkopharma’s restructuring phase and the intentional wind-down of less profitable parallel import volumes weighed on the overall top line.

Profitability improved meaningfully, as reflected in a higher adjusted EBITDA margin supported by better performance at Arkopharma, cost-saving actions, and a more focused parallel import portfolio, and cash generation was notably strong with a sharp rise in operating and free cash flow. However, given that these positives are largely in line with expectations, and the price target remains unchanged at $34, Piasta sees the current valuation as fair rather than compelling, justifying a Hold rather than a more bullish stance.