Bernstein raises Fresenius Medical Care price target on restructuring progress

Published 18/06/2025, 13:54
Bernstein raises Fresenius Medical Care price target on restructuring progress

Bernstein SocGen Group raised its price target on Fresenius Medical (TASE:BLWV) Care (NYSE:FMS), a prominent $15.3 billion healthcare provider with a "GOOD" financial health rating according to InvestingPro, to $31.50 from $26.00 on Wednesday, while maintaining a Market Perform rating on the dialysis provider’s stock.

The price target increase follows a 4.5% sell-off in FMS shares on Tuesday, which Bernstein characterized as a surprising market reaction given what it viewed as "solid" 2030 financial targets presented by the company. The stock appears undervalued based on InvestingPro’s Fair Value analysis, with a PEG ratio of 0.81 suggesting attractive pricing relative to growth potential.

Bernstein cited ongoing restructuring efforts under CEO Helen Giza, who assumed leadership in December 2022, as beginning to translate into improved operational performance. These improvements had helped drive FMS stock up 14.1% in 2024 and 13.7% year-to-date prior to the company’s recent capital markets day.

The research firm projected consistent double-digit earnings growth for Fresenius Medical Care over the next five years, despite some market concerns about potential volume growth impacts from GLP-1 and SGLT2 medications.

While maintaining its Market Perform rating, Bernstein suggested the stock represents a tactical buying opportunity following Tuesday’s pullback, with the new price target indicating approximately 15% upside potential. The company has maintained dividend payments for 28 consecutive years, currently offering a 2.1% yield. Get deeper insights and access to comprehensive financial analysis with InvestingPro’s detailed research report, one of 1,400+ available for top US stocks.

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