Fresenius Medical Care: Balanced Outlook with Hold Rating Amid Mixed Growth Signals

In a report released today, Marianne Bulot from Bank of America Securities reiterated a Hold rating on Fresenius Medical Care AG & Co. KGaA (0H9X – Research Report), with a price target of €48.00.

Marianne Bulot’s rating is based on several factors influencing Fresenius Medical Care AG & Co. KGaA’s performance. The company has shown some positive developments, such as improved patient referrals and a promising outlook for 2025, with expected organic growth surpassing consensus estimates. However, despite these advancements, the growth in patient referrals remains below year-over-year levels, and the company’s stock price shows limited upside potential, which justifies the Hold rating.
Additionally, while the Care Enablement margin has reached its target range for the first time since the FM25 plan’s inception, and the upcoming launch of High Volume Hemodiafiltration is anticipated to bring operational benefits, these factors alone are not sufficient to warrant a more bullish stance. The transition of phosphate binders into the ESRD PPS rate by 2027 is expected to shift revenue streams, but the full impact remains to be seen. Therefore, the Hold rating reflects a balanced view of the company’s current position and future potential.

In another report released yesterday, Bernstein also maintained a Hold rating on the stock with a €50.00 price target.