Yannik Siering, an analyst from Stifel Nicolaus, maintained the Buy rating on Redcare Pharmacy (0RJT – Research Report). The associated price target is €190.00.
Yannik Siering has given his Buy rating due to a combination of factors that highlight Redcare Pharmacy’s strong performance and promising outlook. The company has demonstrated significant growth in its prescription (Rx) segment, with a remarkable acceleration in sales, particularly in the fourth quarter. This growth is supported by an increase in market share within the German Rx market, which is valued at €55 billion, and a substantial rise in the number of Rx customers, who are proving to be more profitable and loyal.
Redcare Pharmacy’s guidance for 2025 exceeds expectations, with anticipated sales growth of over 25% to approximately €3 billion and a projected adjusted EBITDA margin of 2% to 2.5%. The company’s strategic marketing investments have contributed to this growth, despite a temporary decline in margins. Furthermore, the recent European Court of Justice ruling, which supports the company’s promotional strategies, is seen as a positive development. These factors, along with a robust flu season boosting the over-the-counter (OTC) business, underpin Siering’s confidence in the company’s ability to achieve its mid-term margin target and justify the Buy rating.
In another report released on March 14, Kepler Capital also upgraded the stock to a Buy with a €152.00 price target.
Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of 0RJT in relation to earlier this year.