S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Friday, Goldman Sachs revised its stance on Fleury SA (FLRY3:BZ), downgrading the stock from Buy to Neutral and adjusting the price target to R$15.00 from the previous R$16.00. The research firm points to a solid market position for Fleury in the healthcare sector, acknowledging the company’s superior brand perception compared to its competitors. Despite this, analysts predict that growth and profitability for the year 2025 will be subdued, particularly due to the underwhelming performance of the premium brand, which historically has been more profitable.
The premium segment of Fleury’s business is facing stagnation within Brazil’s healthcare market, where the company already holds a significant share. Goldman Sachs provided an analysis showing that the expected growth and margin dynamics for each of Fleury’s business divisions indicate a flat consolidated EBITDA margin in the near term.
Moreover, the firm anticipates that the premium brand will confront two specific challenges in the second quarter of 2025. Firstly, the brand is up against a tougher growth comparison base from the same quarter in the previous year. The premium brand experienced a 5.7% year-over-year growth in the first quarter of 2025, which was measured against a 2.3% year-over-year in the first quarter of 2024. Now, it faces a comparison to a 6.1% year-over-year growth in the second quarter of 2024. Secondly, a calendar effect is expected to impact the brand negatively, as the second quarter of 2025 is forecasted to have two fewer business days compared to the year prior, which could potentially reduce service frequency.
Goldman Sachs’ updated analysis reflects a cautious outlook for Fleury’s performance in the near future, with specific emphasis on the challenges facing the company’s premium brand within a competitive and evolving healthcare market in Brazil.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.