(AOF) – Virbac (-3.30% to 263.50 euros) is the red lantern of the SRD market and the SBF120 index after its degradation by Stifel. The broker went from Buy to Hold on the title su specialist in animal health, with a price target lowered from 342 to 293 euros. “Even if Virbac continues to outperform the market, the growth delta between Virbac and the market has narrowed in recent quarters and the overall market growth rate has also slowed” he notes.
“In the first half, the combination of lower volume and high inflation would continue to squeeze margins,” Stifel said ahead of the half-year results due September 14.
The group issued a warning on its annual results in early July.
This year, Virbac anticipates growth in turnover at constant rates and scope within a range of between 0% and 4%. The adjusted Ebit ratio should consolidate in a range between 12% and 13% at constant exchange rates.
Stifel, however, remains optimistic over the long term and forecasts an average annual growth rate of around 4% over the period 2022-2026, with a stabilization of the Ebita margin towards 15% by 2026 and slightly above. by 16% in 2030, “now that management has overcome its past mistakes” and “with sales and profitability returning to solid levels”.
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