Grifols downgraded to Sell at Deutsche Bank on ‘problem’ of cash flow guidance

As previously reported, Deutsche Bank downgraded Grifols to Sell from Hold with a price target of EUR 7, down from EUR 12, after the firm updated estimates following the Q4 report. The shares have seen volatility following the mixed results/outlook, “further undermined” by Q4 disclosure that audited accounts were in abeyance, notes the analyst. The firm had said in its first take that cashflow remained an acute problem and although Grifols did release additional guidance the day after, the firm thinks guidance for zero free cash flow in FY24 is “a problem,” the analyst tells investors.