On Monday, CFRA initiated coverage on Galderma Group AG shares (GALD:SW), a dermatology-focused company, with a Buy rating and a stock price target of CHF83.00. This target is set above the industry forward average, reflecting confidence in the company's growth prospects.
The firm projects that Galderma's earnings per share (EPS) will be USD2.20 for 2024 and USD2.83 for 2025. These forecasts are based on expectations of revenue increases of 9.8% in 2024 and 10.2% in 2025, as the company expands its market presence and introduces new products.
Galderma's first-quarter trading update for 2024 showed net sales surpassing USD1 billion for the first time in a first quarter, reaching USD1.07 billion. This milestone supports CFRA's revenue growth projections for the company.
The company is also making strategic changes to its distribution model, shifting towards a direct-to-market approach in key regions. This move is anticipated to enhance interactions with consumers and healthcare professionals, potentially driving further growth.
Moreover, Galderma's product pipeline appears promising, with all primary and secondary endpoints being met in completed Phase 3 trials. This successful development is expected to lead to a reduction in research and development costs over time, contributing to margin expansion in the medium term.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.