Galderma Group AG: Hold Rating Amid Uncertainty in Aesthetics and Growth Shift to Nemluvio

Galderma Group AG (GALD – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Thibault Boutherin from Morgan Stanley maintained a Hold rating on the stock and has a CHF105.00 price target.

Thibault Boutherin has given his Hold rating due to a combination of factors influencing Galderma Group AG’s stock. The primary concern is the uncertainty surrounding the aesthetics segment, which is crucial for the company’s mid-term growth. Despite a decent sales forecast for 2025, the anticipated growth in aesthetics does not show acceleration, which raises questions about meeting the mid-term targets.
Moreover, while there is potential upside from the strong performance of Nemluvio, the shift in growth focus from aesthetics to Nemluvio could impact valuation, given that aesthetics revenues are considered more sustainable. The current valuation reflects optimism about Nemluvio’s prospects, but the lack of immediate catalysts beyond its acceleration and the limited visibility on the recovery of the aesthetics segment contribute to the Hold rating.