Gallmetzer Healthcare: Continuous trading and QP hire underpin progress; BUY - NuWays AG Research
GHC recently announced two milestones, showing progress on its anesthetics business Intermedical Pharma and its stock's accessibility to equity investors.
ANNONS
GHC's shares moved to continuous trading. As announced on Friday by the Vienna stock exchange, the stock's trading is to improve with a move from auctioning to continuous trading procedure effective Nov 2nd. While the reported transition represents a change in the way the shares are traded, rather than a change in the company’s underlying fundamentals, this step was taken to improve accessibility and facilitate ongoing price discovery. It can offer investors greater flexibility when entering or exiting positions and allow prices to respond more promptly to new information. Sustained improvement in liquidity will depend on trading volumes and investor participation.
Total cumulative market revenue potential of € 20.5m (eNuW) until FY30e. At an assumed market product price of c. € 28.6 (eNuW) in FY27e, expected to increase with 2% inflation a year over the projection period and the ramp-up of the capacity to c. 600k (eNuW) boxes with up to 90% (eNuW) capacity utilization, Intermedical Pharma is seen as a key growth driver for GHC. With cumulative EBITDA contributions of € 5.7m (eNuW) until FY30 it is also seen as a key driver of GHC's EBITDA margin outlook.
Given the progress made falling in line with expectations, we maintain our estimates and confirm BUY at € 4.4, based on DCF.
