In a report released today, Martin Comtesse from Jefferies maintained a Buy rating on DocMorris (DOCM – Research Report), with a price target of CHF39.00.
Martin Comtesse has given his Buy rating due to a combination of factors that suggest a positive outlook for DocMorris despite a slow start to 2025. The company’s Rx sales were nearly flat compared to the previous quarter, which was anticipated given the current constraints on growth capital. However, the upcoming CHF 200 million capital raise, which is supported by a bank syndicate, is expected to provide the necessary funds for future growth.
With this new capital, DocMorris aims to achieve EBITDA break-even by next year and generate free cash flow by 2027. These goals, although cautious, indicate potential for improvement and growth in the mid-term. The fresh funding and strategic objectives provide a basis for optimism, leading to the Buy rating despite the initial slow performance in the eRX segment.
In another report released on April 4, Stifel Nicolaus also maintained a Buy rating on the stock with a CHF40.00 price target.