J.P. Morgan Maintains Sell Rating for Fresenius Medical Care AG & Co. KGaA with €41.50 Target

J.P. Morgan maintains a Sell rating for Fresenius Medical Care AG & Co. KGaA with a price target of €41.50, down from its previous closing price of €45.79. The company has a Hold analyst consensus rating and a market cap of €13.44B.

Fresenius Medical Care AG & Co. KGaA (FMS) is set to report its Q2 2025 earnings results on Tuesday, July 29th. Analysts expect the company to announce earnings of $0.47 per share for the quarter. This report comes amidst mixed analyst sentiments, with Deutsche Bank recently increasing its price target for FMS from EUR 45 to EUR 50, while J.P. Morgan maintains a Sell rating with a price target of EUR 41.50 [1].

The consensus recommendation from 5 brokerage firms is currently 3.4, indicating a "Hold" status. This rating is based on a scale where 1 signifies a "Strong Buy" and 5 denotes a "Sell" [2]. The average target price from 5 analysts is $29.04, with a high estimate of $40.12 and a low estimate of $22.39. This implies an average upside of 9.95% from the current price of $26.41 [2].

FMS has reported strong organic revenue growth of 5% in Q1 2025, driven by both Care Delivery and Care Enablement segments. The company's operating income grew by 11%, and the net leverage ratio improved to 2.8x, below its self-imposed target range, indicating strong financial discipline [1]. The Care Enablement segment achieved a margin of 8.3%, entering its target margin band of 8% to 12% for the first time [1].

However, FMS faced challenges such as increased missed treatments due to the severe flu season, negatively impacting same market treatment growth in the U.S. Divestitures also negatively affected revenue development by 260 basis points, while special items, including costs related to portfolio optimization and the FME25 transformation program, negatively affected group operating income by EUR126 million [1].

FMS recently declared an annual dividend of $0.7871, up from its previous annual dividend of $0.44. This represents a dividend yield of 1.9% and a payout ratio of 50.89% [2]. The company has a market cap of €13.44B, a PE ratio of 23.48, and a beta of 0.87. Its quick ratio is 1.08, current ratio is 1.46, and debt-to-equity ratio is 0.40 [2].

Institutional investors, such as AQR Capital Management LLC, have shown interest in FMS by increasing their position in the stock [2]. Despite the mixed analyst sentiments, FMS's strong financial performance in Q1 2025 and the expected earnings for Q2 2025 may influence investor decisions.

References:
[1] https://www.gurufocus.com/news/2991085/deutsche-bank-adjusts-price-target-for-fresenius-medical-fms-fms-stock-news
[2] https://www.marketbeat.com/instant-alerts/fresenius-medical-care-ag-co-kgaa-fms-projected-to-post-quarterly-earnings-on-tuesday-2025-07-22/