Oddo BHF ups Virbac on solid fundamentals, improving momentum

Virbac SA

03/07/2025 12:09

** Oddo BHF raises Virbac to "outperform" from "neutral", citing solid fundamentals, improving momentum and medium-term potential

** Shares in the animal drugs company rise about 8%, sitting at the top of France's SBF 120 .SBF120 index

** The broker notes Virbac's life cycle management supports good Q1 results, citing a smooth sequence of launches, both completed and forthcoming, ensuring regular and visible growth in a structurally growing market

** Virbac aims for operating margin of 20% in 2030 vs 16% in 2024, driven by R&D expense normalization, acquisitions, new products, scale effects, and productivity gains

** Oddo BHF highlights the company's programmatic M&A strategy, and points to a "firepower" of close to 300 million euros ($353.79 million) to find growth opportunities and EBITDA synergies

** The broker expects momentum to pick up after H1 and suggests patient investors may find it interesting to reposition on the stock

($1 = 0.8480 euros)

 (Reporting by Olivier Cherfan)

 ((olivier.cherfan@thomsonreuters.com))