BofA Securities on Wednesday downgraded Fresenius Medical Care KGAA ST (ETR:FMEG) stock rating to underperform from neutral, citing limited visibility on patient volume recovery and margin risks in 2025-26.
The firm also lowered its price objective to €38 from €50.
BofA analysts point to fading near-term growth drivers for the dialysis provider, with U.S. same market treatment growth remaining below the company’s 2% target since Q2 2025.
The average growth rate from 2021 to Q2 2025 was -0.9%, according to the research note.
The bank lowered its adjusted EBIT estimates by 6-8% for FY25-FY26 and now sits 3-5% below consensus.
Analysts cite several headwinds, including the potential expiration of Affordable Care Act subsidies and a mix shift toward value-based care, which could pressure margins despite the company’s cost-saving initiatives.
Fresenius Medical Care currently trades at 6.3x next-twelve-month EV/EBITDA compared to the sector average of 11.9x, and 11.0x NTM P/E versus the sector’s 18.8x. BofA attributes this discount to the company’s below-sector returns, margins and growth prospects.
While acknowledging potential catalysts like the company’s share buyback program and high-volume hemodiafiltration (HV HDF) rollout, BofA believes these are either already well-appreciated by the market or won’t drive meaningful near-term upside.
Source :
https://www.investing.com/news/analyst-ratings/fresenius-medical-care-stock-rating-downgraded-to-underperform-by-bofa-4288981
