Update shared on 09 Dec 2025
Analysts have raised their price target on Virbac by EUR 25 to EUR 415, citing an acceleration in the company’s growth across all regions.
Analyst Commentary
Following the recent upgrade, research coverage has focused on the sustainability of Virbac’s growth acceleration and its implications for valuation.
Bullish Takeaways
- Bullish analysts highlight that faster growth across all regions supports the higher price target and suggests upside potential relative to prior expectations.
- The broad-based momentum in international markets is viewed as evidence of strong execution. This is seen as reducing perceived regional concentration risk in the medium term.
- Improved growth visibility is seen as justification for a premium valuation multiple versus historical averages in the animal health sector.
- Analysts see the upgraded rating as a signal that earnings revisions could trend higher if current growth trends persist.
Bearish Takeaways
- Bearish analysts caution that the share price already reflects a significant portion of the anticipated growth. This is viewed as limiting near term rerating potential.
- There are concerns that maintaining accelerated growth across all regions may prove difficult if macroeconomic or sector specific conditions soften.
- Some analysts flag execution risk around scaling operations to meet higher demand, which could pressure margins if not managed efficiently.
- Any slowdown in regional momentum could prompt downward revisions to earnings forecasts and could put the new price target at risk.
What's in the News
- Virbac raised its 2025 revenue growth guidance at constant exchange rates and scope to a range of 5.5% to 7.5%, up from 4% to 6%. This reflects stronger than previously expected sales momentum in the third quarter (Key Developments).
- The company confirmed its broader 2025 outlook for revenue growth at constant exchange rates and scope of 4% to 6%, with the Sasaeah acquisition expected to contribute approximately 1 additional percentage point of growth in 2025 (Key Developments).
Valuation Changes
- Fair Value: unchanged at approximately €403.20, indicating no material revision to intrinsic value estimates.
- Discount Rate: effectively stable at about 6.18%, suggesting no reassessment of Virbac’s risk profile.
- Revenue Growth: essentially flat at around 5.25%, with only a negligible technical adjustment to the forecast.
- Net Profit Margin: remains steady at roughly 12.23%, reflecting no meaningful change in profitability expectations.
- Future P/E: unchanged at about 18.9x, indicating that valuation multiples applied to future earnings are consistent with prior assumptions.
Disclaimer
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