Hold Rating Maintained on Dermapharm as Profitability Gains Offset by Weak Top-Line Momentum and Limited Near-Term Upside

Fabian Piasta, an analyst from Jefferies, maintained the Hold rating on Dermapharm Holding SE. The associated price target is €34.00.

Fabian Piasta has given his Hold rating due to a combination of factors, notably that Dermapharm’s preliminary FY25 figures only meet the lower bound of management’s guidance on both revenue and adjusted EBITDA. Fourth-quarter sales grew just modestly year over year and fell clearly short of consensus expectations, indicating weaker top-line momentum than the market had anticipated.

At the same time, profitability improved, with adjusted EBITDA rising at a high‑teens rate and the margin reaching 30.0%, helped by portfolio streamlining and the phase‑out of low-margin parallel import volumes. However, the subdued Q4 revenue performance suggests that Arkopharma’s restructuring and business model changes are not yet delivering, and contributions from Euromed and Huebner are insufficient to offset this softness, leaving limited near‑term upside ahead of the detailed FY25 report and FY26 guidance at the end of March.

According to TipRanks, Piasta is a 4-star analyst with an average return of 24.3% and a 68.09% success rate. Piasta covers the Industrials sector, focusing on stocks such as BELIMO Holding AG, Bossard Holding AG, and SFS Group AG.