Vetoquinol: sanctioned after the annual review

Photo credit © Vetoquinol

( — Vetoquinol corrected by 7% to 101.2 euros the day after the presentation of 2023 turnover of 529 million euros, stable at constant exchange rates, and down -1.9% in published data.

TP ICAP Midcap (‘purchase’) explains that the normalization of the market is also illustrated in the second half of the year for Vetoquinol and should continue into 2024 allowing the expression of operational leverage. The increased refocusing of the group in the period from 2026 in species, domains & products should allow the company to gain critical mass on its specialties, to replicate the defensive growth of its market and to deliver an EBITDA margin of the order of 20%, well beyond what prevailed in 2019 (ref. 15.5%) although the group is increasing its R&D investments (7% of turnover or more) and marketing in support of products.

Portzamparc mentions a publication of good quality despite slightly less sustained organic growth at the end of the financial year. The good performance of the stock over the past 3 months has led the brokerage house to downgrade the value to ‘strengthen’ despite a target price raised from 101.8 to 117.5 euros. Gilbert Dupont also downgrades his recommendation to ‘reduce’.

This T4 is nothing extraordinary, but the animal health sector shows that the market is normalizing, notes Oddo BHF. Vétoquinol will have to face an unfavorable base effect in Q1 (recall Q1 2022: +13%), which leads the broker to believe that the timing will undoubtedly be better, once this base effect has passed. The analyst has an improved perception of Vétoquinol compared to the 2023 situation, but his ‘neutral’ recommendation reflects his preference for Virbac. The stock should continue to be supported by its membership in a Health segment on the stock market which is sending out more encouraging signals…


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