2023-07-07 16:47:12
Various diabetes medications from the insulin world market leader Novo Nordisk have recently gained a certain notoriety as “diet injections”. There were probably some Hollywood and social media greats who helped the preparations. Many other manufacturers have now jumped on this trend and are increasingly releasing anti-obesity drugs alongside their diabetes preparations.
This has also been recognized by packaging supplier Gerresheimer, which specializes in sectors such as pharmaceuticals, biotechnology, health and cosmetics. The M-Dax company would like to expand its range of products, including in the area of so-called GLP-1-related treatments. A capital increase was carried out for the necessary investments.
The company management took advantage of the strong market environment. The Gerresheimer share price recently reached record levels and, with an increase of around 70 percent, was one of the best developments in the second German stock exchange league. In this way, it was possible to shake off a certain hangover after Gerresheimer was still considered a so-called corona profiteer.
FAZ.NET columnist Christoph Scherbaum is a stock exchange specialist and works as a financial journalist in Ludwigsburg. : Image: Christoph Scherbaum
The development of vaccines and drugs against Covid-19 had increased the demand for the corresponding packaging, which also helped the Gerresheimer share in the meantime. After the end of the pandemic, however, disillusionment followed. This low has now been more than overcome. Gerresheimer is looking ahead again.
In mid-April 2023, 3.14 million new shares were placed at EUR 86.50, with gross proceeds of EUR 271.6 million. The new GLP-1 application fields for the treatment of obesity, in which the investments will flow in part, should contribute, among other things, to the fact that the company can continue to come up with double-digit growth rates in terms of sales and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). can.
Despite a difficult economic environment, Gerresheimer was able to deliver convincing results with sales of EUR 1.82 billion and adjusted EBITDA of EUR 354 million for the 2022 financial year. The start of the 2023 financial year was also more than just something to be proud of. Revenues in the first half of 2023 grew organically by 16.6 percent year-on-year to EUR 957.4 million. Adjusted EBITDA increased organically by 23.0 percent to EUR 185.2 million.
In accordance with the medium-term target, Gerresheimer intends to organically increase sales by at least 10 percent in the current financial year, according to its own forecast. Adjusted EBITDA should also increase organically by at least 10 percent. In the medium term, an adjusted EBITDA margin of 23 to 25 percent is also planned. In view of such price fireworks and the positive prospects, it is hardly surprising that Gerresheimer also has fans among analysts.
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David Adlington, analyst at JP Morgan, has given Gerresheimer shares an “overweight” rating and a price target of EUR 144.10. That would currently correspond to a price potential of almost 40 percent. Analysts point out that the annual targets are “very easily achievable”. In addition, despite the significant increase, the share is valued more attractively than many of its industry competitors.
Christoph Scherbaum Published/Updated: , Recommendations: 11 Christoph Scherbaum Published/Updated: , Recommendations: 12 Christoph Scherbaum Published/Updated: , Recommendations: 10
Meanwhile, Credit Suisse analyst Christoph Gretler has lowered his profit estimates due to the recent share placement, but his “confidence in long-term growth expectations” has increased. The Swiss bank is therefore sticking with the status of “outperformer” and has slightly raised its price target from EUR 100.00 to EUR 110.00. At Deutsche Bank, the target price remains at EUR 140.00, while the rating is “Buy”. In view of the long-term upward trend that has been intact since mid-December last year, the analysts’ assessments should not be unrealistic.
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