Last Update 05 Feb 26

Fair value Decreased 8.56%

VIMIAN: Future Leadership Change Will Support Execution Upside Despite Sector Downgrade

Narrative update

Analysts have trimmed their price expectations for Vimian Group, with the updated fair value estimate easing from SEK 36.92 to SEK 33.76, as some now see lower future P/E assumptions and have adopted more cautious views similar to the recent SEK 27 price target cut in Street research.

Analyst Commentary

Recent research updates on Vimian Group have taken a more cautious tone, with the shift to an Underweight rating and a price target of SEK 27, down from SEK 37. This reflects more conservative views on valuation and execution in the medium term.

Bullish Takeaways

Bullish analysts still see room for upside if Vimian can execute consistently against current expectations and close the gap between the SEK 27 target and the higher fair value estimate of SEK 33.76.
The inclusion of Vimian in a 2026 industry outlook suggests the company remains relevant in its sector, which some investors may interpret as a sign that it could benefit if sector conditions improve.
Even with a lower target, coverage continues, which can help keep attention on future execution, capital allocation, and any potential improvement in earnings visibility.
The reset in expectations may lower the bar for future performance. Solid delivery on guidance or cost control could be treated favorably by the market.

Bearish Takeaways

Bearish analysts have shifted Vimian to an Underweight stance, which flags concerns that current pricing may not fully reflect execution risks or the company’s ability to meet prior growth expectations.
The price target cut from SEK 37 to SEK 27 points to a less generous view on valuation multiples such as P/E, with lower assumptions on what investors might be willing to pay for expected earnings.
Inclusion of the downgrade within a broader 2026 industry outlook hints that sector level headwinds or a tougher competitive backdrop are being factored into Vimian’s projected earnings power.
The tighter gap between the revised target and recent trading levels can signal less margin of safety for investors who are looking for a wider discount to fair value before adding exposure.

What's in the News

Vimian Group AB appointed Alireza Tajbakhsh as Chief Executive Officer, effective 24 November 2025. He will continue to serve as Head of the Veterinary Services segment and interim Head of the MedTech segment (Key Developments).
The board highlighted Tajbakhsh's international leadership background across media and life sciences, including prior senior roles at Omnicom Media Group and Modern Times Group, and his M.Sc. from the Stockholm School of Economics (Key Developments).
Carl Johan Zetterberg Boudrie, who has been interim CEO alongside his CFO role, is thanked by the board and will continue as CFO and partner to the incoming CEO (Key Developments).
Tajbakhsh will retain interim operational responsibility for Vimian's MedTech segment while the company recruits a permanent Head of MedTech (Key Developments).

Valuation Changes

Fair Value Estimate eased from SEK 36.92 to SEK 33.76, a modest reduction in the modelled upside case.
Discount Rate adjusted slightly from 6.12% to 6.09%, implying only a small change in the required return used in the valuation.
Revenue Growth trimmed from 8.87% to 8.71%, reflecting a marginally more cautious top line assumption.
Net Profit Margin increased from 16.89% to 17.69%, assuming a bit more profitability on each SEK of revenue.
Future P/E moved down from 23.57x to 21.28x, indicating that the valuation now builds in a lower earnings multiple than before.

Sustained demand for advanced veterinary care and expansion in niche, high-margin segments position Vimian for recurring revenue and profit growth.
Strategic acquisitions, digital adoption, and operational improvements support increased market share, new growth avenues, and recovery in underperforming areas.
Reliance on acquisitions, leadership instability, and margin pressure from weaker segments and accounting scrutiny threaten earnings quality, strategic execution, and sustainable profit growth.

Catalysts

About Vimian Group

Engages in the animal health business worldwide.What are the underlying business or industry changes driving this perspective?

Ongoing growth in global pet ownership and the continued humanization and aging of companion animals are driving sustained, resilient demand for advanced veterinary healthcare services and products, supporting Vimian's long-term opportunity for organic and recurring revenue growth.
Expansion in high-margin, niche segments such as veterinary dental products and specialty pharmaceuticals-including recent bolt-on acquisitions like AllAccem-enables Vimian to improve product mix, drive top-line growth, and support EBITDA/net margin expansion as distribution and operational synergies are realized.
Acceleration of digitalization and new technology adoption in animal health (e.g., diagnostics, data-driven platforms) opens new product and service categories for Vimian, enhancing customer engagement, differentiation, and the long-term growth trajectory of the Diagnostics and Veterinary Services segments, which reported robust double-digit organic growth.
Continued consolidation in the veterinary healthcare sector, combined with Vimian's proven global M&A integration model and healthy M&A pipeline, provides multiple catalysts for inorganic revenue expansion and increased market share, with recent strategic acquisitions showing limited near-term profit impact but strong potential to boost future earnings.
Recent leadership changes and a renewed focus on commercial execution-especially in underperforming MedTech Orthopedics-target an operational turnaround that, if successful, could restore growth and margin improvements in this previously higher-margin segment, positively impacting earnings and restoring investor confidence.

Vimian Group Earnings and Revenue Growth

Vimian Group Future Earnings and Revenue Growth

Assumptions

How have these above catalysts been quantified?

Analysts are assuming Vimian Group's revenue will grow by 9.7% annually over the next 3 years.
Analysts assume that profit margins will increase from 5.6% today to 17.6% in 3 years time.
Analysts expect earnings to reach €93.9 million (and earnings per share of €0.14) by about September 2028, up from €22.8 million today.
In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 23.9x on those 2028 earnings, down from 63.0x today. This future PE is lower than the current PE for the SE Medical Equipment industry at 49.4x.
Analysts expect the number of shares outstanding to grow by 0.8% per year for the next 3 years.
To value all of this in today's terms, we will use a discount rate of 5.96%, as per the Simply Wall St company report.

Vimian Group Future Earnings Per Share Growth

Risks

What could happen that would invalidate this narrative?

The company is experiencing sustained weakness in its MedTech Orthopedics segment, particularly in the U.S., driven by a soft market for high-cost elective procedures, customers working through inventories, and tighter clinic budgets; management does not expect immediate improvement, which could negatively impact revenue and margin recovery over the next several quarters.
There have been significant leadership transitions, including the abrupt CEO departure and change in MedTech segment leadership, with an interim CEO and newly recruited commercial leaders; these disruptions could prolong operational uncertainty, limit strategic execution, and introduce organizational risk, pressuring earnings and investor confidence.
Vimian's growth remains heavily reliant on acquisitions (M&A), with 12% of Q2 growth coming from acquisitions versus 5% organic growth; this strategy, coupled with rising net debt and leverage (2.1x post-acquisition), increases financial risk, interest expenses, and could threaten net margins and longer-term earnings if organic growth remains subdued.
Margin compression is a growing concern, as the addition of lower-margin dental businesses (iM3, AllAccem) and weak Orthopedics hit overall margins (group margin at 24.3%, down year-on-year); a continued revenue mix shift toward lower-margin businesses could suppress sustainable EBITDA and profit growth.
There is growing scrutiny on adjusting out costs related to long-term incentive (LTI) plans, an accounting approach questioned by analysts as unusual in the sector, raising concerns about earnings quality and the true cost structure, potentially affecting perceptions of net income and recurring profitability.

Valuation

How have all the factors above been brought together to estimate a fair value?

The analysts have a consensus price target of SEK38.904 for Vimian Group based on their expectations of its future earnings growth, profit margins and other risk factors.
In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be €533.3 million, earnings will come to €93.9 million, and it would be trading on a PE ratio of 23.9x, assuming you use a discount rate of 6.0%.
Given the current share price of SEK30.24, the analyst price target of SEK38.9 is 22.3% higher.
We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Digital Adoption And Niche Expansion Will Empower Veterinary Healthcare