Redcare Pharmacy Wins on Prescriptions but Pays for It in the Share Price
Published on 11/08/2026 at 05:41 | Editorial boerse-global.de
MPCM lifted its price target on Redcare Pharmacy to EUR 125 from EUR 120 on Tuesday and kept its buy rating intact — a move that, according to media reports, rests largely on a technical adjustment in how the convertible bond is treated rather than on a brighter view of the business.
The nuance matters. The research house did raise its earnings before interest and taxes estimates for 2026 through 2028 following the quarterly figures, yet it trimmed its per-share earnings expectations over the same stretch. Its rationale for the higher target was chiefly valuation-driven, not the product of uniformly improved profit forecasts.
A Quarter That Grew — and a Stock That Didn't
Redcare's third-quarter 2026 results, published just over a week ago, tell a story of two speeds. Group revenue came in at EUR 847 million, up 18% year on year. Prescription drugs powered that advance with a 31% jump, while the non-prescription business added 9% — leaving its revenue below the EUR 491.1 million forecast the company itself had compiled.
Germany's prescription segment was the standout, expanding 56%, and management flagged it as the central engine behind the top line. Adjusted EBITDA before interest, taxes and depreciation climbed 68% to EUR 28.7 million, lifting the corresponding margin to 3.4% — a full 1.0 percentage point better than a year earlier. Net profit reached EUR 1 million. Across the first nine months, revenue totaled EUR 2.55 billion, a gain of 19%.
Should investors sell immediately? Or is it worth buying Redcare Pharmacy?
Customer loyalty remains a quiet strength: more than 15 million active customers across seven European markets, with a reorder rate above 90% in the third quarter.
Guidance Held, but Investors Looked Short-Term
Management reaffirmed its 2026 outlook of 16% to 18% revenue growth, with the adjusted EBITDA margin expected to land between 2.5% and 3.0%.
The market, however, focused elsewhere. Media reports pointed to a more cautious near-term revenue outlook and competitive pressure as the drags on sentiment — concerns that also extended to an anticipated slowdown in German prescription growth. The stock fell 1.7% to EUR 70.75 on Friday, a muted reception for a quarter that delivered double-digit expansion on nearly every line.
Redcare Pharmacy at a turning point? This analysis reveals what investors need to know now.
The gap between the operating performance and the share price reaction captures the tension in the Redcare story right now: execution in prescriptions is running well ahead of the non-prescription business, but investors are pricing in what comes next rather than what just arrived.
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