Redcare Pharmacy stock: Jefferies keeps Buy rating at EUR 97

Redcare Pharmacy stock traded at 74.13 euros on Lang & Schwarz at 11:17 CET on Thursday, November 5, 1.97 percent above the Xetra close of Wednesday, November 4. The price indication came as investors weighed a mixed analyst signal: Jefferies reaffirmed its Buy rating on Tuesday while preferring DocMorris in the online pharmacy sector, according to Boerse Express.

Customer activity versus sales momentum

Jefferies analyst Martin Comtesse kept a 97-euro price target and pointed to strong customer activity in October. The assessment provides a positive read on demand engagement, but it does not remove the near-term uncertainty around sales growth.

Redcare said at its October 29 results presentation that non-prescription growth had started October below 10%. Management also expected prescription growth to moderate from the exceptionally strong third-quarter rate. Those comments concern the pace of expansion rather than a forecast decline in revenue.

The combination leaves investors with two different operating signals. Customer activity can remain firm while revenue growth slows if order frequency, product mix or seasonal demand develops less favorably. For the share price, the key question is whether the October trend is temporary or becomes visible in fourth-quarter revenue and profitability.

Strong quarter, unchanged annual targets

The cautious short-term outlook follows a strong third quarter. Redcare increased revenue by 18 percent year over year to 847 million euros, while adjusted EBITDA rose 68 percent to 28.7 million euros. The adjusted EBITDA margin reached 3.4 percent, up from 2.4 percent a year earlier.

Prescription revenue in Germany grew 56 percent in the quarter, while non-prescription revenue increased 9 percent. The company also reported a second consecutive profitable quarter and ended September with 15.2 million active customers.

Redcare left its upgraded 2026 targets unchanged. It still expects total revenue growth of 16 to 18 percent, non-prescription growth of 10 to 12 percent, German prescription revenue of 730 million to 760 million euros and an adjusted EBITDA margin of 2.5 to 3.0 percent.

What investors should watch next

The analyst view supports the strength of Redcare's customer franchise but highlights the gap between activity indicators and reported sales growth. Meeting the unchanged annual targets will depend on the development of both prescription demand and the non-prescription business during the final quarter.

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