Redcare Pharmacy Stock: This is a Robust Rally

Last Updated: 14. Dezember 2023By

The Redcare Pharmacy stock is now trading stably above the mark of 130 euros and is one of the big winners of the stock market year 2023 – since the beginning of the year the price of the paper of the drug wholesaler (formerly Shop Apotheke) has almost tripled.

Despite the strong development, Redcare Pharmacy is still in growth mode and there is still room for the share price to go up. From January 1, 2024, the long-awaited obligation for the e-prescription from the company’s point of view will also come into effect. This should further boost business from 2024.

Redcare Pharmacy with strong nine-month figures After 9 months of the business year, Redcare Pharmacy achieved sales of around 1.3 billion euros, about 45 percent more than in the previous year. At the same time, the EBIT margin rose to 2.9 percent and the number of customers increased to around 10.5 million.

From the beginning of January, prescriptions for prescription drugs will be mandatory as an e-prescription. This can also be redeemed in online pharmacies, so that providers like Redcare Pharmacy will probably gain more customers in the coming months. Fewer stationary pharmacies on the one hand mean better business for online pharmacies on the other.

Redcare Pharmacy-Aktie: Still more potential after price explosion? In view of the very strong performance in 2023, investors can of course be skeptical about the coming quarters for the Redcare Pharmacy-Aktie. And the introduction of the e-prescription is at least partially already priced in with a plus of 200 percent on an annual basis. Nevertheless, the long-term prospects for the paper are good to very good.

Some arguments: The EBIT margin is on the right track, but there is still plenty of room for improvement. The dying of stationary pharmacies will not be completely stopped, so that Redcare Pharmacy will steadily gain more customers in the coming years. And through the mandatory e-prescription, access to online pharmacies will be further facilitated for less affluent customers. In the medium and long term, the Redcare Pharmacy-Aktie still has potential despite the rally in 2023.