EU healthcare: Jefferies focuses on investment returns

Richter Gedeon Vegyeszeti Gyar Nyrt

21/01/2020 09:18

** Jefferies turns its focus to investment returns, saying
cash-based metrics are a better long-term predictor of value
than earnings
    ** Key winners on overall capital investment return are the
Hungarian Gedeon Richter  GDRB.BU , German Fresenius Medical
Care  FMEG.DE  and Danish Demant  DEMANT.CO , Jefferies says
    ** For the three companies, Jefferies sees the potential to
double in 5 years including capital allocation strategies to
distribute and redeploy cash
    ** The broker ups FMC to "buy" from "hold", saying the
market is not giving enough credit for the German dialysis
provider's homecare strategy
    ** Jefferies says Belgium's IBA  IBAB.BR , Finland's Orion
 ORNBV.HE  and Britain's Dechra  DPH.L , Hikma  HIK.L , Scapa
 SCPA.L  and Spire  SPI.L  are most likely to underperform the
market return rate
    ** The broker cuts IBA to "underperform" from "hold" saying
IBA's market share position is increasingly challenged, coupled
with steepening price pressure

 ((marta.frackowiak@tr.com; zuzanna.szymanska@tr.com))