Grifols S.A. (ES:GRF) is a Spanish healthcare company with a worldwide presence in more than 100 countries. After trading in the red zone over the last year, the company’s shares started to trade positively in 2023. YTD, the shares have gained 9% in trading. Analysts are predicting a potential upside of around 46% in the share price.
In 2023, the stock picked up some momentum after the company disclosed its first-quarter earnings. The company’s revenues increased by 23.2% to €1.56 million, driven by its biopharma business. It also reported an 11% year-over-year increase in plasma collections, while noting a 15% reduction in the cost of obtaining plasma.
What Lies Ahead?
The company is set to publish its first-half earnings for 2023 on July 27. The company has revised its guidance and now anticipates a 21% increase in EBITDA for the first half of the year, with expectations of reaching a range between 22% and 24% for the entire year.
Analysts like the fact that the company’s plasma business is back on track after getting severely hit by the COVID-19 pandemic.
The company has also taken steps to reassure investors through cost-cutting initiatives and a change in leadership. The workforce reduction by the company is projected to result in annual savings of $450 million for the company in the long term. Investors are responding positively to such decisive actions by the company.
Is Grifols a Good Investment?
According to analysts’ evaluations on TipRanks, GRF stock is believed to have significant upside potential and is regarded as a favorable investment opportunity. The stock holds a Strong Buy rating, supported by four Buy recommendations and one Hold recommendation.
The average price prediction for a 12-month period is €17.88, which implies a 46% growth from the current price.
