'Sky's the limit' for Vetoquinol growth prospects, Stifel ups

Vetoquinol SA

10/01/2022 10:05

** Stifel upgrades French animal health group Vetoquinol
 VETO.PA  to "buy" from "hold" as it forecasts a very strong set
of annual results and future acquisitions
    ** The brokerage expects the positive sales dynamic to
continue and a stronger base effect and support costs to slowly
come back to a more normalised level
    ** It estimates EPS will be 17% above consensus expectations
in 2021, while it sees adjusted EBIT margins to gradually reach
around 20% in 2025
    ** Stifel notes the cash accumulated during the pandemic
should enable Vetoquinol to acquire products in one of its
therapeutic domains and for one of its key species
    ** "Furthermore, we expect the upcoming new 5-year plan to
drive expectations upward, increasing visibility on the group's
targets and strategy," it adds
    ** Vetoquinol shares, which have gained nearly 3%
year-to-date, are up 4.8% as of 1000 GMT, on track for their
best day since the beginning of last September

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))