Fresenius Medical Care AG & Co. KGaA: Stable U.S. Growth and Structural Challenges Amid Hold Rating

Bank of America Securities maintains a Hold rating on Fresenius Medical Care AG & Co. KGaA with a €56.00 price target. The company's Q2'25 results are expected to show stable growth in the US market, but structural challenges and the absence of mid-term revenue guidance are concerns. The stock's valuation is considered fair relative to its growth prospects, leading to a Hold rating.

Bank of America Securities has reiterated its Hold rating on Fresenius Medical Care AG & Co. KGaA, with a price target of €56.00. The decision is based on the company's anticipated Q2'25 results, which are expected to show stable growth in the U.S. market. However, structural challenges and the absence of mid-term revenue guidance are significant concerns for the analysts. Despite these challenges, the company's ongoing savings programs and improvements in Care Enablement suggest potential for gradual margin improvement. The stock's valuation is considered fair relative to its growth prospects, leading to the Hold rating.

Fresenius Medical Care AG & Co. KGaA is a leading provider of dialysis and related services for individuals with renal diseases in Germany, North America, and internationally. The company offers dialysis treatment and related laboratory and diagnostic services through a network of outpatient dialysis clinics; materials, training, and patient support services; and dialysis services under contract to hospitals.

The company's Q1'25 results showed strong performance, with revenue of €5.54 billion, earnings per share of $0.44, and a return on equity of 6.25%. However, the analysts at Bank of America Securities are cautious about the company's mid-term prospects due to the lack of revenue guidance and the potential impact of foreign exchange headwinds.

The stock has a market cap of $15.43 billion, a PE ratio of 23.48, a P/E/G ratio of 0.63, and a beta of 0.87. It has a quick ratio of 1.08, a current ratio of 1.46, and a debt-to-equity ratio of 0.40. The stock has a 52-week low of $17.93 and a 52-week high of $30.46. The business's 50-day simple moving average is $28.15 and its two-hundred day simple moving average is $25.53.

Fresenius Medical Care AG & Co. KGaA recently declared an annual dividend of $0.7871, representing a dividend yield of 1.9% and a payout ratio of 50.89%. The company's stock has a consensus rating of "Hold" and a consensus target price of $27.80.

Institutional investors have shown interest in the stock, with AQR Capital Management LLC raising its position in the company's stock by 14.2% in the 1st quarter. The company's stock is owned by 8.37% of institutional investors and hedge funds.

The company's Q2'25 results are expected to be announced on Tuesday, July 29th. Investors should closely monitor the results and the company's mid-term guidance to assess the potential impact on the stock price.

References:
[1] https://www.marketbeat.com/instant-alerts/fresenius-medical-care-ag-co-kgaa-fms-projected-to-post-quarterly-earnings-on-tuesday-2025-07-22/
[2] https://www.tipranks.com/news/ratings/hold-rating-for-fresenius-medical-care-ag-co-kgaa-amid-stable-u-s-growth-and-structural-challenges-ratings?mod=mw_quote_news