Dermapharm: Mixed start to the year with missed expectations; PT down, BUY
Dermapharm Holding SE reported a good start to the year, with decent revenue and profitability performance.
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What's it all about ?
Dermapharm Holding SE (Dermapharm) reported a good start to the year, with decent revenue and profitability performance. Adj. EBITDA witnessed high-teens growth despite strained supply chains, lockdowns in China, and the Russia-Ukraine war. However, the company clearly missed expectations. We continue to believe that the expansion of vaccine production in cooperation with BioNTech SE remains an important growth driver. Furthermore, another growth driver in the Herbal Extracts segment will be the recently acquired cannabis business, which is expected to gain importance in 2022. Even if the overall perspectives are good, we no longer consider the anticipated upper end of the guidance to be achievable. With reduced expectations and generally adjusted model assumptions to reflect possible headwinds in 2022, we are reducing the target price by c. 17% to EUR 70.00 from EUR 84.00. After yesterday's price slump, however, our rating remains a BUY.
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