Fresenius Medical Care: UBS still a buyer
(CercleFinance.com) - This morning UBS confirms its buy rating on the share of Fresenius Medical Care (FMC), the German dialysis specialist, after the publication of its annual results.
Maintained at 82 euros, the broker's 12-month target price suggests upside potential of 14%.
Analysts note that Q4 sales posted by the subsidiary of Fresenius SE exceeded the consensus by 2%, while operating profit was in line and net income, which was expected to be around 370 million euros, came in at 425 million euros.
They also highlight the improvement in organic growth in North America, the group's main market, and the announcement of share repurchases amounting to one billion euros of over two years.
In addition, this year FMC targets organic growth of 3% to 7%, while the consensus was a little more cautious, looking for the middle of the range (+4.5%). Even if (as anticipated, UBS says), the guidance for 2020 has been trimmed, they predict an acceleration. In short, according to the the broker's report, underlying trends remain intact.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Maintained at 82 euros, the broker's 12-month target price suggests upside potential of 14%.
Analysts note that Q4 sales posted by the subsidiary of Fresenius SE exceeded the consensus by 2%, while operating profit was in line and net income, which was expected to be around 370 million euros, came in at 425 million euros.
They also highlight the improvement in organic growth in North America, the group's main market, and the announcement of share repurchases amounting to one billion euros of over two years.
In addition, this year FMC targets organic growth of 3% to 7%, while the consensus was a little more cautious, looking for the middle of the range (+4.5%). Even if (as anticipated, UBS says), the guidance for 2020 has been trimmed, they predict an acceleration. In short, according to the the broker's report, underlying trends remain intact.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.