HSBC shifts to Redcare Pharmacy from DocMorris

DocMorris AG

02/10/2024 11:34

** HSBC upgrades Redcare Pharmacy  RDC.DE  to "buy" from
"hold" pointing to a strong performance in its electronic
prescription business that outperformed rival DocMorris DOCM.S 
which it downgrades to "hold" from "buy"
    ** HSBC says in the first two quarters since the
introduction of electronic prescriptions, the online pharmacy
retailer benefited substantially more than DocMorris "for
reasons that aren't perfectly clear to us, yet"
    ** "We now prefer RDC over DOCM", says the broker and
assumes that the better performance comes from Redcare's
celebrity-focussed ad campaign and says the company's future
market share could be stronger than anticipated
    ** "We are concerned that Redcare Pharmacy will continue to
outgrow DocMorris in e-Prescribing, the most important area of
the ePharmacy investment cases,"  HSBC says
    ** Out of 15 analysts that cover Redcare Pharmacy, ten rate
the stock "strong buy" or "buy", "two rate "hold" and three rate
the stock "strong sell" or "sell"

 (Reporting by Chiara Holzhaeuser)
 ((Chiara.Holzhaeuser@thomsonreuters.com))