Grifols: stock up 1.5% - even with in-line growth

(CercleFinance.com) - The share of Spanish pharmaceuticals group specialised in blood products, Grifols, is up 1.
5% on the Madrid Stock Exchange (down 0.75% at lunchtime) after the group announced its Q3 results.

Invest Securities believes that, overall growth was in line with expectations and that its EBITDA margin (excluding IFRS 16) in Q3 reached an historic peak (29% vs. the broker's estimate of 28%), driven by the cost savings plan and a very favourable mix.

Following this announcement, the analyst reiterates a target price of 36 euros for the share, in addition to a buy rating on it (41% upside potential).

Q3 could be considered as a forerunner of its LT growth prospects, while in the near term, its momentum should be impacted by the effects of reduced (blood) collection. However, the broker says that these items are already well priced in by the market.


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