(new: prices, details and comments from traders and analysts)
FRANKFURT (dpa-AFX) – Among Redcare Pharmacy investors, pessimists and optimists competed for the limelight on Friday. Hopes for good deals with e-prescription were offset by concerns over profitability after the online pharmacy lowered its margin forecasts. Lately, the optimists have gained the upper hand slightly.
At midday, the stock still showed an increase of 1.6% to 137.20 euros. Redcare Pharmacy shares were among the biggest gainers on the MDax. The mid-cap index recently rose about 1 percent.
After the good performance of Redcare Pharmacy shares in recent weeks, they even climbed up to 5% to nearly 142 euros. This was its highest level since early August. Since the intermediate low reached in mid-September, the price has increased by more than 19%.
Redcare had lowered its margin forecasts due to high expenses linked to the rise of e-prescription. Redcare’s Shop Apotheke brand has for some time been promoting television host Günther Jauch and actors Christian Ulmen and Collien Ulmen-Fernandes. Pessimists pointed out that the introduction of e-prescription had an impact on profitability, while optimists pointed to the convincing sales of prescription drugs in Germany, which can be purchased via an app.
Analyst Martin Comtesse from the analysis firm Jefferies, for example, saw a “strong point” in the sharp increase in e-recipe sales. The expert praised management’s decision to increase marketing spending in order to capture growth opportunities, even if it comes at the expense of profitability this year.
Baader Bank analyst Volker Bosse made similar comments. Most important for the investment story is the massive increase in momentum in the revenue sector. Additionally, the specialist praised the online pharmacy’s strong benchmark data. They exceeded his expectations.
Investment bank Stifel continues to recommend buying Redcare Pharmacy shares. Its price target of 178 euros is also one of the highest, as data from the financial service Bloomberg shows. Stifel analyst Yannik Siering highlighted the CFO’s statement that the benefits clearly outweigh the costs in the long term.
One trader added that e-commerce offers significant opportunities. This is especially true for patients with chronic illnesses who require prescription medications.
UBS expert Olivier Calvet, however, said this was further evidence that electronic prescribing was costing online pharmacies more than expected. He also referenced competitor DocMorris’ recent profit warning. The latter’s shares fell more than one percent on Friday.
Redcare’s chart image has further improved following recent price gains. Currently, the stock price sits comfortably above closely observed average lines that describe short, medium and long-term trends /la/tih/jha/.
