FMC slides after Berenberg cuts to 'hold' on weak US volume growth

By Reuters News

** Fresenius Medical Care FMEG.DE shares fall nearly 3% in early Frankfurt trade as Berenberg cuts the kidney care products and services provider to "hold" from "buy," citing weak US treatment growth

** US same-market volumes fell 0.9% in the second quarter after declining 0.4% in Q1, versus Berenberg's long-term growth assumption of more than 2%

** "We think that evidence of positive US treatment growth is needed for a re-rating, but visibility is limited and it will likely take at least several quarters to emerge," the brokerage says

** Berenberg sees Fresenius SE's remaining 25% stake as limiting further upside

** It notes, however, FMC has executed its FME25+ transformation programme well, delivering about €920 million of its €1.2 billion savings target

** The brokerage cuts target price to €42 from €60, implying 3.8% upside from Monday's close of €40.45

($1 = 0.8803 euros)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.