KBC says Fagron's pullback overdone, upgrades to 'buy'

Fagron NV

12/10/2021 10:10

** KBC Securities upgrades healthcare company Fagron
 FAGRO.BR  to "buy" from "hold" as it sees the recent pullback
in share price to be overdone
    ** Fagron's shares fell to 14.6 euros on Oct. 7, the lowest
since the record lows of 14.3 euros ($16.53) hit during the peak
market turmoil of the pandemic; stock down 20% since the
beginning of the year
    ** While COVID-19-related impact moved from the topline to
the margin as pressure on the supply chain drives up costs of 
goods, growth drivers in LATAM and the U.S. compounding  
segment are positioned for sustained growth, KBC says
    ** Encouraging topline should suffice for the stock to
reappreciate, it adds
    ** Brokerage sees the stock's price range of 18-22 euros
($20.8-25.4) as "fair for the company" as well as no reason for
the sudden drop from an operations perspective
    ** Out of the six analysts who cover Fagron, three rate the
stock "strong buy" or "buy and ​three "hold" - Refinitiv


($1 = 0.8651 euros)

 (Reporting by Kate Entringer)
 ((kate.entringer@thomsonreuters.com))