In a report released today, Julien Ouaddour from Bank of America Securities reiterated a Hold rating on Fresenius Medical Care AG & Co. KGaA, with a price target of €50.00.
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Julien Ouaddour has given his Hold rating due to a combination of factors impacting Fresenius Medical Care AG & Co. KGaA. The company’s growth in the US market is now expected to be flat to slightly positive, a downgrade from previous expectations, due to factors like flu-driven mortality affecting patient volumes. While there are positive developments such as the upcoming buyback and the rollout of high-volume hemodiafiltration (HV HDF), these are not anticipated to significantly influence the stock’s revaluation.
Moreover, the company’s financial outlook has been adjusted downward, with estimates for FY25 and FY26 being lowered by 1-3% primarily due to foreign exchange headwinds. The price objective has also been reduced to €50 from €56, reflecting these lower estimates and a sector-wide derating. Despite some positive catalysts, the lack of clear visibility on a recovery in patient volumes supports the Hold rating, as the market appreciates the potential benefits of the company’s strategic initiatives.
Ouaddour covers the Healthcare sector, focusing on stocks such as Fresenius Medical Care AG & Co. KGaA, Alcon, and Amplifon S.p.A.. According to TipRanks, Ouaddour has an average return of 21.4% and a 77.27% success rate on recommended stocks.
In another report released today, Deutsche Bank also maintained a Hold rating on the stock with a €48.00 price target.