Palantir a high-risk investment with ’a one-of-a-kind growth and margin model’
On Monday, Deutsche Bank (ETR:DBKGn) analysts, led by Emmanuel Papadakis, adjusted their outlook on Grifols SA (NASDAQ:GRFS) (GRF:SM) (OTC: GIFOF), increasing the price target from EUR10.00 to EUR11.00 while maintaining a Hold rating on the stock. The new target reflects a more stable corporate environment for the healthcare company following a period of turbulence in 2023.
Papadakis noted that Grifols (BME:GRLS) has made progress in addressing key investor corporate governance concerns and has seen the conclusion of a CNMV investigation. Additionally, the company’s strategic refocusing actions, including the exit of SRAAS, have somewhat stabilized its solvency situation, despite ongoing reservations from rating agencies.
The exit of Brookfield from Grifols’ corporate structure has also turned investors’ attention back to the company’s fundamental performance. At the Capital Markets Day, the company provided detailed insights into its operations, which were postponed from the Q4 results announced the previous day.
While Grifols’ FY25 guidance fell short of expectations, the medium-term outlook for FY29 was positively robust, particularly regarding EBITDA, surpassing Deutsche Bank’s own projections. However, Papadakis highlighted that the anticipated improvements are predominantly expected in the later years of FY27-29. Given Grifols’ mixed track record in recent years, these projections may be perceived with a degree of skepticism by investors.
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