Fresenius SE: Berenberg cuts target price, maintains 'buy'
(CercleFinance.com) - Berenberg has cut its target price for the Fresenius SE stock to 70.
95 euros from 81.85 euros, although maintains its "buy" rating on the share, stating "upside worth the wait."
According to the broker, there is no plausible scenario around Fresenius' hospital group unit Helios that can justify the group's current valuation.
"Modelling a decade of losses in this business would not reduce our valuation for Fresenius to the current share price," it wrote in a note.
Berenberg thus thinks that all of Fresenius' woes are over-discounted, which explains why it maintains its "buy" rating.
German healthcare group Fresenius SE last Friday abandoned its targets for 2020 as the group said it was expecting to make "record investments" in 2019.
Copyright (c) 2018 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.
95 euros from 81.85 euros, although maintains its "buy" rating on the share, stating "upside worth the wait."
According to the broker, there is no plausible scenario around Fresenius' hospital group unit Helios that can justify the group's current valuation.
"Modelling a decade of losses in this business would not reduce our valuation for Fresenius to the current share price," it wrote in a note.
Berenberg thus thinks that all of Fresenius' woes are over-discounted, which explains why it maintains its "buy" rating.
German healthcare group Fresenius SE last Friday abandoned its targets for 2020 as the group said it was expecting to make "record investments" in 2019.
Copyright (c) 2018 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.