Redcare Pharmacy stock: Forecast for 2024 exceeds expectations

Last Updated: 5. Mรคrz 2024By

The Redcare Pharmacy stock has had a mixed performance so far this year after a spectacular year in the stock market in 2023. The stock is currently trading at around 132 euros, roughly the same level as in early January. After the presentation of the final numbers including the outlook, the Redcare Pharmacy stock was able to gain significantly in the short term (as of March 5, 2024, around 10 am).

Although the revenue growth is expected to slow down in 2024 compared to the previous year, the forecast was still above expectations. For the online pharmacy retailer’s stock, there are opportunities for growth this year following the strong numbers โ€“ although it is unlikely that the pace of last year’s rally can be maintained.

Redcare Pharmacy: The outlook is convincing The final numbers for the 2023 fiscal year are impressive: Redcare Pharmacy has achieved approximately 1.8 billion euros in revenue, an increase of about 49 percent over the previous year. At the same time, the adjusted EBITDA margin has climbed from minus 0.7 percent to plus 3 percent.

However, the outlook for the current year was eagerly awaited โ€“ and here, the pharmacy retailer has exceeded expectations in some areas. In 2024, revenue is expected to increase between 30 and 40 percent to 2.3 billion to 2.5 billion euros. The adjusted EBITDA margin is expected to be between 2 and 4 percent. In the medium and long term, the company still aims for a margin of 8 percent.

Redcare Pharmacy stock: Pause from the rally Although it is not surprising that the growth rates of the previous year cannot be maintained, a 30 to 40 percent increase in revenue is still a strong number. Therefore, Redcare Pharmacy’s outlook for 2024 is generally convincing. It remains to be seen how the recently increased number of customers will develop, and whether or not the company can increase its margin.

Analysts are mostly optimistic about the Redcare Pharmacy stock. After the fresh numbers, the neutral analysis firm Warburg Research (target price 130 euros) and the much more positive Baader Bank (target price 175 euros) have both confirmed their target prices. In general, the Redcare Pharmacy stock offers opportunities for investors due to its growth prospects โ€“ but larger fluctuations are possible at any time.