Berenberg maintains Buy rating, EUR22.70 target on Fagron shares

Published 16/04/2025, 14:02
Berenberg maintains Buy rating, EUR22.70 target on Fagron shares

On Wednesday, Berenberg reiterated its Buy rating and a price target of EUR22.70 on Fagron NV (FAGR:BB) (OTC: ARSUF). This affirmation comes after Fagron’s first capital markets day (CMD) since March 2022, which took place on April 10, 2025. The event featured presentations by CEO Rafael Padilla, CFO Karin de Jong, and other key divisional leaders who provided insights into the company’s strategy and financial outlook.

The Berenberg analyst expressed a positive view on Fagron’s growth prospects, noting the company’s strong performance at the start of the fiscal year 2025. Fagron’s position appears robust in the face of tariffs introduced by US President Donald Trump, as it has mechanisms to pass increased costs onto customers and is shifting procurement from China to Brazil.

In addition to the company’s strategy for handling tariffs, Berenberg highlighted the potential for margin improvement by the fiscal year 2030. The expected improvements are attributed to scale benefits, a better product mix, and increased operational efficiencies. Fagron’s capital allocation policy remains focused on investing in organic growth and strategic acquisitions while upholding a strong balance sheet.

Fagron’s stock performance has been relatively stable in the current market environment, with a year-to-date increase of approximately 16%. Despite this rise, the shares are currently trading at a multiple of just 8.8 times EBITDA for the fiscal year 2025, which suggests a valuation that Berenberg views as favorable.

The analyst’s comments reinforce the confidence in Fagron’s strategic measures and its financial health, supporting the Buy rating and the maintained price target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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