Shares of Fresenius SE & Co. KGaA (ETR: FRE) are continuing their upward trend, reaching a new yearly high of €46.16 today, up 1.23%. This positive momentum is fueled by a renewed upward revision of the price target by Morgan Stanley analyst Robert Davies, who raised the target from a previous €48 to the current €50, while reaffirming the “Overweight” rating for the stock.
The Fresenius stock price has shown a strong performance in recent periods, with a 9.84% rally over the 1 month, and a 37.68% YTD. This has moved FRE to it's highest point in a number of years.
The positive analyst assessment from Morgan Stanley is based on the assumption that Fresenius has reached a turning point in streamlining its portfolio.
In addition to Morgan Stanley, other analysts have also updated their assessments of Fresenius. On August 7, Deutsche Bank confirmed its “Buy” rating with a price target of €52, while JPMorgan maintained its “Overweight” rating with a price target of €49.10. UBS also confirmed its “Buy” rating on August 6 with a price target of €49.
Recent company news also contributes to the positive sentiment. On August 6, Fresenius announced an increase in its revenue forecast for 2025, with expected organic revenue growth of 5-7% instead of the previously projected 4-6%. Furthermore, the company plans to proportionally sell shares in its former dialysis unit Fresenius Medical Care (FMC) to maintain its current stake of about 28.6%. This move follows FMC's €1 billion share buyback program announced in June.
In the second quarter of 2025, Fresenius achieved an EBIT of €654 million (excluding special effects), which exceeded analyst expectations by 2.6%. CEO Michael Sen, who has been in office since October 2022, is driving the organizational restructuring to reduce costs and liabilities. The focus is on the core areas of Fresenius Kabi (generics for hospitals) and the hospital operator Helios.
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