(Boursier.com) — Vetoquinol outperformed the market in the morning thanks to a gain of 2% to 99 euros. Following the company’s annual publication, TP ICAP Midcap raised its recommendation on the animal health group to ‘buy’, targeting 120 euros. The group should benefit from the normalization of the market and the return of volumes (to be seen in Essentials) despite the continued rationalization of complementary products in progress, affirms the broker. The firm’s increased refocusing on species, areas and products should enable the company to gain critical mass on its specialties, replicate the defensive growth of its market and deliver an EBITDA margin of around 20%, well above – beyond what prevailed in 2019 (ref. 15.5%) even so, the group is increasing its R&D investments (7-8% of turnover) and investing in its sales force in the United States and in marketing in product support.
Portzamparc (‘strengthen’) highlights the good cash generation which gives room for maneuver to carry out M&A operations this year. The tone is reasonably cautious at the start of the year due to a complicated base effect in the first quarter.
©2024 Boursier.com