VIMIAN: Future Leadership Will Drive Cash Flow Execution Upside Despite Sector Downgrade

Analysts have trimmed their price target on Vimian Group by SEK 10 to SEK 27. This reflects slightly higher discount rate assumptions and more conservative long term valuation multiples for the sector.

Analyst Commentary

Analyst sentiment on Vimian Group remains mixed, with the latest target cut reflecting growing scrutiny of the company’s medium term growth and margin trajectory.

While the sector backdrop and higher discount rates are weighing on valuation, investors are focused on whether management can deliver on execution and cash flow improvement to support the new target range.

Bullish Takeaways

• Bullish analysts highlight that the reduced target still implies upside from current trading levels, suggesting the market may already discount a more cautious sector outlook.
• The diversified portfolio across animal health niches is seen as a structural growth driver that could support above market revenue expansion over the 2026 horizon if integration and cross selling are executed well.
• There is confidence that incremental operational efficiencies and disciplined capital allocation could lift margins, providing scope for multiple stabilization despite a higher discount rate environment.
• Some see the lowered expectations as resetting the bar to a more achievable level, which may reduce the risk of future estimate cuts if Vimian delivers steady, albeit more modest, growth.

Bearish Takeaways

• Bearish analysts view the downgrade and target reduction as a signal that sector wide growth assumptions for 2026 and beyond are being re rated, putting pressure on valuation multiples across animal health names.
• There are concerns that organic growth may remain uneven and that integration of past acquisitions could continue to weigh on execution risk and near term profitability.
• Higher discount rate assumptions and more conservative long term multiples suggest that even solid operational delivery may not fully offset macro and sector headwinds in the valuation framework.
• Some investors worry that limited visibility on cash generation and deleveraging may cap re rating potential, especially if industry sentiment stays cautious through the 2026 outlook period.

What's in the News

• Vimian Group appointed Alireza Tajbakhsh as Chief Executive Officer effective 24 November 2025, with Tajbakhsh also retaining interim operational responsibility for the MedTech segment while a permanent head is recruited (Key Developments).
• Tajbakhsh, previously Head of Veterinary Services and interim Head of MedTech, brings international leadership experience from media and life science companies, reinforcing continuity within Vimian’s existing management team (Key Developments).
• The board expressed thanks to Carl Johan Zetterberg Boudrie for serving as interim CEO in addition to his CFO role. He will continue as a key partner to Tajbakhsh in his position as CFO (Key Developments).
• Vimian reiterated that mergers and acquisitions remain a core strategic pillar, with management actively accelerating efforts to advance a growing M&A pipeline across existing platforms and new market niches (Key Developments).
• The company targets EUR 300 million in revenue by 2030 while keeping leverage below 3.0x, positioning its balance sheet to support continued disciplined deal making in animal health (Key Developments).

Valuation Changes

• Fair Value: edged down slightly from 36.97 to 36.92, reflecting a marginally more conservative intrinsic valuation.
• Discount Rate: decreased modestly from 6.14 percent to 6.12 percent, implying a slightly lower required return in the updated model.
• Revenue Growth: effectively unchanged at around 8.87 percent, indicating stable assumptions for Vimian’s top line expansion.
• Net Profit Margin: remains essentially flat at approximately 16.89 percent, signaling no material revision to long term profitability expectations.
• Future P/E: increased slightly from 23.45x to 23.57x, suggesting a small uplift in the multiple applied to forward earnings.