GALD: Execution On New Aesthetic Launches And Margin Gains Will Sustain Upside

The fair value estimate for Galderma Group has been raised to CHF 149.91 from CHF 142.41. This change reflects analysts' increased confidence due to positive revisions to growth and margin forecasts, as well as a series of upward price target adjustments from major research firms.

Analyst Commentary

• Bullish analysts have significantly raised their price targets for Galderma, reflecting stronger confidence in the company’s growth trajectory.
• Upward revisions are tied to improved margin forecasts. This suggests the firm is expected to drive higher profitability in coming quarters.
• Growing consensus around Galderma’s execution and management strategy supports optimism for sustained performance in a competitive sector.
• Increased price targets signal that recent results and future guidance are aligning with analysts’ expectations for continued value creation.

• Despite positive target revisions, some analysts maintain a more neutral view on the shares. This indicates lingering caution around valuation at current levels.
• A sector perform rating persists in part due to competitive pressures and uncertainty in sustaining margin improvements over the longer term.
• Bearish analysts note that further upside may be constrained if growth does not meet heightened expectations reflected in new price targets.

What's in the News

• Galderma raised its 2025 full-year guidance, forecasting net sales growth of 17.0 to 17.7 percent year-on-year at constant currency, driven by strong performance in Nemluvio and Injectable Aesthetics (corporate guidance update).
• Six new scientific posters, including clinical data on Restylane Shaype's effectiveness for chin enhancement, will be presented at the Aesthetic & Anti-Aging Medicine World Congress in Dubai. This underscores innovation in the aesthetic portfolio (AMWC announcement).
• Cetaphil, a Galderma brand, launched the Skin Activator Hydrating & Firming line targeting advanced hydration and firming solutions for aging and fragile skin. Clinical trials showed rapid and visible improvements (product launch).
• New research from Galderma highlights the impact of pollution and modern lifestyles on sensitive skin. Urban environments are linked to higher inflammation, oxidative stress, and skin aging (EADV congress presentation).
• Alastin, Galderma's premium peri-procedural skincare brand, debuted in China with four core products, expanding the company's presence in the fast-growing aesthetic skincare market (business expansion).

Valuation Changes

• The Fair Value Estimate has risen from CHF 142.41 to CHF 149.91, reflecting a moderate upward adjustment based on updated forecasts.
• The Discount Rate remains unchanged at 3.82 percent, indicating consistent assumptions about capital costs and risk profiles.
• The Revenue Growth Forecast has increased from 15.27 percent to 16.65 percent, signaling improved sales expectations for the upcoming period.
• The Net Profit Margin is up slightly from 18.29 percent to 18.36 percent, suggesting marginally higher profitability projections.
• The Future P/E Ratio has edged down from 36.08x to 35.78x, showing a slight decrease in the valuation multiple applied to future earnings.