Stifel ups Virbac to 'buy' on pet consumers boost

Virbac SA

07/02/2023 11:14

** Stifel upgrades Virbac  VIRB.PA  to 'buy' from 'hold', as
it sees the stock as undervalued, not reflecting the positive
steps taken by the animal drugs maker in recent years
    ** "The current share price does not adequately reflect the
recovery story that has materialised over the past five years,
nor the COVID-19 boost or Sentinel sale," the brokerage says 
    ** Volumes for pet food and drugs are poised to remain at
historically high levels, still supported by the exceptionally
high pet adoption levels of the Covid-19 pandemic
    ** Stifel expects these developments to allow for drastic
deleveraging and renewed investment capacity, laying "solid
foundations for future growth"
    ** Its pricing power and debt-free profile will help the
animal drugs maker in a scenario characterised by high
inflation, lower margins and higher cost of capital and debt
    ** Out of 9 analysts that cover Virbac, six rate the stock
"strong buy" or "buy", while ​three rate it "hold"
 (Reporting by Carlo Giovanni Boffa)
 ((Carlogiovanni.boffa@thomsonreuters.com))