Stifel sees return to profit growth for Vetoquinol, raises to 'buy'

Vetoquinol SA

02/09/2024 14:30

** Stifel raises French animal health group Vetoquinol
 VETO.PA  to "buy" from "hold" on expectations of a return to
profit growth by FY 2024
    ** "After two consecutive years of adjusted EBIT decline, we
forecast +6% growth in FY24e, accelerating to +11% in FY25e,"
broker says
    ** Stifel calls Vetoquinol "the highest quality company in
the veterinary healthcare industry when judged by its gross
margin level"
    ** Broker raises group price target by over 26% to 120 euros
 ($132.84), sees valuation discount to peers fading and a
multiple of 12x EV/EBIT adj in FY 2025 (currently trading at
around 10x)
    ** Out of five analysts that cover Vetoquinol, two rate it
"strong buy" or "buy" and ​three rate it "hold"
    


($1 = 0.9033 euros)

 (Reporting by Dimitri  Rhodes)
 ((Dimitri.Rhodes@thomsonreuters.com;))