Update shared on 10 Dec 2025
Narrative Update on CareRx
Analysts have modestly increased their price target on CareRx to reflect a slightly higher valuation multiple and stable expectations for revenue growth and profit margins. This translates into a small upward adjustment in projected equity value by a few cents per share.
What's in the News
- The Board of Directors authorizes a new share buyback plan, signaling continued focus on capital returns to shareholders (Key Developments).
- CareRx announces a normal course issuer bid to repurchase up to 1,500,000 common shares, about 2.5% of shares outstanding. All repurchased shares will be cancelled, and the bid will expire on September 16, 2026 (Key Developments).
- Between July 1, 2025 and September 6, 2025, CareRx repurchases 204,794 shares for CAD 0.63 million, bringing total buybacks under the September 3, 2024 program to 690,964 shares, or 1.11% of share capital (Key Developments).
- From September 15, 2025 to September 30, 2025, the company reports no additional share repurchases under the newly announced buyback authorization (Key Developments).
Valuation Changes
- Fair Value Estimate remains unchanged at CA$4.86 per share, indicating a stable intrinsic value assessment.
- Discount Rate has risen slightly, from 6.55 percent to 6.55 percent, reflecting a marginal increase in the assumed cost of capital.
- Revenue Growth Outlook is effectively unchanged, remaining around 5.75 percent, suggesting stable expectations for top line expansion.
- Net Profit Margin Assumption has increased marginally, from approximately 1.46 percent to 1.46 percent, implying a slightly improved long term profitability view.
- Future P/E Multiple has edged up slightly, from 60.45x to 60.45x, pointing to a modestly higher valuation multiple applied to expected earnings.
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