Vetoquinol: Stifel upgrades stock
(CercleFinance.com) - Stifel has upgraded Vetoquinol shares from 'hold' to 'buy', with a target price raised from E95 to E120, expecting the animal health group to return to earnings growth in 2024, and supporting an upgrade in the coming quarters.
After two consecutive quarters of decline in adjusted EBIT, the broker expects it to rise by 6% in 2024, then accelerate to +11% in 2025. In the longer term, it sees an opportunity to reach E120m in 2027.
We expect the valuation discount to peers to fade, and see a 2025 adjusted EV/EBIT multiple of 12x as justified over the next 12 months, Stifel adds, which points to 28% upside potential for the stock.
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The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
After two consecutive quarters of decline in adjusted EBIT, the broker expects it to rise by 6% in 2024, then accelerate to +11% in 2025. In the longer term, it sees an opportunity to reach E120m in 2027.
We expect the valuation discount to peers to fade, and see a 2025 adjusted EV/EBIT multiple of 12x as justified over the next 12 months, Stifel adds, which points to 28% upside potential for the stock.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.