Berenberg has raised its price target for Fresenius Medical (FMS, Financial), increasing it from EUR 55 to EUR 60. The firm maintains its Buy rating on the stock, reflecting continued confidence in FMS's market performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Fresenius Medical Care AG (FMS, Financial) is $27.77 with a high estimate of $33.31 and a low estimate of $22.49. The average target implies an upside of 2.61% from the current price of $27.06. More detailed estimate data can be found on the Fresenius Medical Care AG (FMS) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Fresenius Medical Care AG's (FMS, Financial) average brokerage recommendation is currently 3.4, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Fresenius Medical Care AG (FMS, Financial) in one year is $22.97, suggesting a downside of 15.11% from the current price of $27.06. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Fresenius Medical Care AG (FMS) Summary page.
FMS Key Business Developments
Release Date: May 06, 2025
- Organic Revenue Growth: 5% with contributions from both Care Delivery and Care Enablement.
- Operating Income Growth: 11% increase, consistent with the expected phasing of the full year outlook.
- Net Leverage Ratio: Improved to 2.8x, below the self-imposed target range.
- Care Enablement Margin: Improved to 8.3%, entering the target margin band of 8% to 12%.
- Same Market Treatment Growth (U.S.): Stable, with a 0.5% plus expected growth for 2025.
- Same Market Treatment Growth (International): Accelerated to 2.5%.
- Lives Under Management: Increased from around 130,000 to around 148,000 by the end of March.
- Special Items Impact: Negatively affected group operating income by EUR126 million.
- Operating Cash Flow: Increased by 28% against last year's quarter due to improved operating working capital.
- Bond Issuance: Placed 2 bond tranches with an aggregate volume of EUR1.1 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fresenius Medical Care AG (FMS, Financial) reported strong organic revenue growth of 5% in Q1 2025, driven by both Care Delivery and Care Enablement segments.
- The FME25 transformation program delivered EUR68 million in additional sustainable savings, contributing to the company's financial health.
- Operating income grew by 11%, positioning the company well for future quarters.
- The net leverage ratio improved to 2.8x, below the self-imposed target range, indicating strong financial discipline.
- Care Enablement segment achieved a margin of 8.3%, entering its target margin band of 8% to 12% for the first time.
Negative Points
- The severe flu season led to increased missed treatments, impacting same market treatment growth in the U.S.
- Divestitures negatively impacted revenue development by 260 basis points.
- Special items, including costs related to portfolio optimization and the FME25 transformation program, negatively affected group operating income by EUR126 million.
- Labor and inflation costs offset some of the earnings developments in the Care Delivery segment.
- The company faced a headwind from one less dialysis day in the quarter, affecting absolute volume development and utilization.
