SRH AlsterResearch AG Update: Dermapharm Holding SE - Strong cash conversion paves the way for future growth

 

Dermapharm Holding SE (Update) Health Care MCap EUR 3.8bn BUY, PT EUR 80.00 (+13% potential) Research_update Dermapharm recorded a successful start for 2021, reporting healthy growth in Q1 revenues and adjusted EBITDA. The group demonstrated solid flexibility and business resilience, despite ongoing market challenges amid the pandemic. The confirmed 2021 outlook on organic revenue and adjusted EBITDA growth of 24%–26% and 45%–50%, respectively, looks achievable, reflecting its plans to expand its partnership with BioNTech for more vaccine production in Reinbek plant, Allergopharma integration benefits and easing of the pandemic amid rapid vaccination drive. We maintain our “BUY” recommendation and price target at EUR 80.00. For 5 current investment ideas, check our Weekly Screener. This week we are looking for stocks that have suffered most from the recent sector rotation. Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de