Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Fresenius shares rise; Kabi raises 2023 outlook

Published 05/25/2023, 07:27 AM
Updated 05/25/2023, 07:27 AM
© Reuters.

© Reuters.

Investing.com -- With a price increase of 1.30%, Fresenius shares (ETR:FREG) ranked second in the German benchmark DAX index on Thursday. Positive share price impetus was provided by a capital market day in London centered around its pharmaceuticals and medical technology subsidiary Kabi.

Fresenius Kabi, which focuses on sales of infusion solutions, clinical nutrition and biosimilars, now expects mid-single-digit organic sales growth this year, the presentation said. Previously, management had expected low- to mid-single-digit sales growth. From 2022 to 2026, Kabi targets organic sales growth of 4% to 7% annually.

Fresenius Kabi now sees the EBIT margin at 14% instead of one percentage point below the medium-term target of 14%-17%. The upper end of the margin range is expected to be reached by 2026.

Fresenius shares have gained 4.2% so far this year, but lost almost 14% over one year. In recent months, the stock has been weighed down mainly by the high debt burden against the backdrop of rising interest rates and sluggish business at Fresenius Medical Care (ETR:FMEG) and Vamed, which are to be held only as financial investments in the future under a plan unveiled at the beginning of the year. Instead, Fresenius will focus on its two mainstays - Kabi and Helios.

While the 16 analysts covered by Investing.com have a consistently positive view of the Fresenius share on a 12-month horizon and have an average price target of around €37 (€1=$1.0727), the return potential is somewhat more moderate according to InvestingPro's fair value estimate, which is based on 11 financial models. Accordingly, the stock offers a price potential of 14% to the fair value of €31.21.

(Translated from German)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.