Grifols: shares drop after Berenberg downgrade

(CercleFinance.com) - Grifols shares are down 3.
5% at 23.2 euros on Madrid's blue-chip index, the IBEX 35, after Berenberg downgraded the stock.

The broker has cut its rating on the company's "A" shares from "buy" to "hold" and has cut its target price from 28.3 euros to 25 euros.

The broker, however, maintains its "buy" rating on the company's "B" shares, with a target price of 21.25 euros, noting that they are "much cheaper."

"Grifols is well positioned to benefit from robust growth in plasma products. However, without commensurate growth in other proteins, each additional litre of plasma processed puts its margins under further pressure," the broker writes.

Berenberg thinks that the A shares will not appreciate until investors have "digested" the outlook.

Grifols A shares have fallen 3.8% so far this year, underperforming the IBEX 35, which is up 4.3%.

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