Fresenius Medical reinstated with an Underperform at BofA

BofA reinstated coverage of Fresenius Medical with an Underperform rating and EUR 31 price target, equating to a $16.92 price target on the ADR. The firm recognizes Fresenius’ new management team and FME25 program are improving results from a low base, but expects lower volume growth from GLP-1 drugs, which coupled with wage inflation, leads to margins pressure. The firm sees too many overhangs, and too few controllable by management, and believes the current discount to the sector on 2024E P/E could widen, the analyst tells investors.