12:30 AM EDT, 05/08/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our target price of $17, implying 11.7x our 2024 earnings per ADS, below its 3-year mean of 14.5x, justified in our view to reflect the long-term growth uncertainty. FMS posted a rather mixed result in Q1 2024 with operating income margin (excluding special items) improving 1.3%-pts, helped by the phasing of value-based care business and the realization of FME25 savings. However, for Care Delivery, the U.S. same market treatment growth was negative (-0.3% adjusted for the exit from less profitable acute care contracts) as bad weather and the flu season led to a higher level of missed treatments, which could put the full year target of 0.5%-2.0% at risk, in our view. FMS said it is encouraged to see the better referrals trend in Q1, although this will take time to translate into treatment numbers and some clinics still face capacity constraints issue. We keep our estimates. Further FME25 savings should continue to help growth in 2024, though we are cautious on cost inflation and soft treatments growth.