Jefferies cuts Virbac to 'hold' on bigger inflation risks

Virbac SA

18/10/2022 08:10

** Jefferies downgrades Virbac  VIRB.PA  to "hold" from
"buy", saying it has underestimated the potential inflation
risks for the French animal drugs maker
    ** "Virbac may not be as cheap as we had previously
expected," it says, as it expects the group to narrow its 5-10%
CER revenue guidance on 9-month revenues
    ** "We now believe the market is likely to apply a greater
discount to VIRP given cited pressures from macro trends which
may impact margins into FY23," the brokerage adds
    ** British peer Dechra Pharmaceuticals  DPH.L  offers more
value, specially when considering implied multiples, Jefferies
says, raising the stock to "buy" from "hold"
    ** "We believe our prior approach had undervalued prospects
in the context of a shift to increasing innovation," it says on
Dechra, seeing the company well positioned mid-term
    ** The stock of Virbac, which is down around 33% YTD, is
rated "strong buy" or "buy" by six analysts and "hold" by three
    ** The stock of Dechra, which is down around 49% YTD, is
rated "strong buy" or "buy" by seven analysts and "hold" by four
 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))