Dylan Van Haaften, an analyst from Stifel Nicolaus, maintained the Buy rating on Medacta Group SA (MEDGF – Research Report). The associated price target is CHF142.00.
Dylan Van Haaften has given his Buy rating due to a combination of factors that highlight Medacta Group SA’s strong financial performance and growth potential. The company reported a notable beat on its FY24 EBITDA, with a 4% increase compared to expectations, driven by operational efficiencies that improved EBITDA margins. Additionally, Medacta’s guidance for FY25 indicates a conservative yet promising outlook, with expected growth in constant currency terms between 13-15% and stable EBITDA margins, aligning with market estimates.
Furthermore, the company’s operational free cash flow saw a significant rise of 42%, and capital expenditures increased, reflecting strong client interest in their product lines. The acquisition of Parcus is expected to contribute positively to earnings, supporting Medacta’s growth trajectory. Overall, the company’s ability to manage costs effectively and maintain robust cash flow positions it well for continued success, justifying the Buy rating.