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Research Alert: CFRA Lower Opinion On Adss Of Fresenius Medical Care To Hold From Buy

05/10/2021 03:47

07:40 AM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our opinion to Hold from Buy with the same target price of USD40 as we view the stock to be fairly valued at current level. This implies 17.8x our 2021 earnings per ADS, in line with its 5-year average. Our earnings per ADS estimates of EUR1.85 for 2021 and EUR2.25 for 2022 remain unchanged as FMS confirmed its 2021 outlook. FMS continues to guide for revenue to grow by low- to mid-single-digit percentage, but net income to decline by high-teens to mid-twenties percentage range in 2021 due to the expected impact of the excess mortality (due to Covid-19) on treatment volumes. In Q1 2021, net income fell by 12% Y/Y (-6% Y/Y at constant currencies), dragged by the unfavorable Covid-19 impact and higher personnel costs. We continue to expect margin pressure in 2021 impacted by Covid-19-related costs as well as the expected lower clinic utilization (from the lower treatment volumes).