The organic growth story continues

Small miss in Q3, growth case unchanged

Specialty Pharma & Vet services to drive growth

Vimian (Buy, TP: SEK55.00) - iM3 acquisition added to forecasts

We are slightly below consensus on Q3e sales and adj. EBITA, as we are more cautious on Medical Technology regarding products for elective surgeries in the US. With increased forecasts from Q4, owing to the recent iM3 acquisition, we have raised our target price to SEK55 (50) and reiterate our BUY.

Positive US hospital capex outlook for H2'24

Bolt-on acquisition into a new niche

Vimian (Buy, TP: SEK50.00) - Stronger than expected margins

Q2 earnings were above our forecast. Sales were in line, but margins were better than expected, driven by positive sales mix and growth in high-margin areas. Diagnostics is still facing headwinds that are likely to continue into 2025. The balance sheet is strong due to the recent rights issue. M&A is still high on the agenda. We reiterate our BUY and have raised our target price to SEK50 (40).

Confirmation of long-term growth case

Specialty Pharma drives earnings beat in Q2

Vimian (Buy, TP: SEK40.00) - Mostly progressing well

With the exception of livestock-related diagnostics, we believe Vimian’s underlying operations are progressing well. The company did not announce any M&A in Q2, but we believe it is actively looking for new potential add-ons – and possibly, larger, more transformative deals. We reiterate our BUY and SEK40 target price.

Momentum picking up in Q2'24e

Q2'24 results due 15 August. Growth momentum expected to return, +10% organic growth. '24e adj. EBITA up 0.3-5.2% for '24e-'26e.

The power of M&A compounding

Temporary setback in Q1

Larger than expected impact from AOP in Q1 putting temporary pressure on growth and margins. Growth case intact, BUY and TP of SEK 34 unchanged.

Vimian (Buy, TP: SEK40.00) - Soft start, but successful issue

Q1 sales and earnings disappointed, largely explained by Medtech (negative annual ordering programme (AOP) effects) and one-off costs. With the oversubscribed SEK1.63bn rights issue completed, Vimian has financing to execute on M&A opportunities near-term. We reinstate a recommendation with a BUY and SEK40 target price.

Miss on earnings due to MedTech

Slow start in Q1e

Vimian (No_rec, TP: SEK) - Updated targets and capital raise

This morning, Vimian updated its long-term financial targets and announced a rights issue. The new financial targets include adj. EBITA of >EUR300m by 2030 and net debt/LTM adj. EBITDA of below 3x. The company also announced a rights issue of cSEK1.6bn intended to strengthen the balance sheet and allow for further M&A activity. Given DNB Markets’ role in the rights issue, we have withdrawn our recommendation and target price.

Vimian (Buy, TP: SEK41.00) - Focus on cash flow going forward

Q4 earnings were better than expected but this was mostly due to the capitalisation of development costs, making this a ‘low-quality’ earnings beat. The new CEO (from Danaher Corp.) seems focused on improving cash flow, which has been a weak point for Vimian in the past. Also, we got the impression that M&A might be back on the agenda. We reiterate our BUY and have raised our target price to SEK41 (38).

Vimian (Buy, TP: SEK38.00) - Healthy underlying growth

We believe underlying market growth for the companion-animal space grew by c6% YOY in Q4, and for Vimian we expect organic growth of c10% YOY. We understand it plans to narrow the annual ordering programme (AOP) in Q1 to smooth the sales trend in the medical technology space. We expect no news on the litigation in the US with the sellers of VOI. We reiterate our BUY, but have cut our target price to SEK38 (40) on forecast changes.

Vimian (Buy, TP: SEK40.00) - Investing for the future

Q3 earnings were in line with our estimates, with sales c2% above our forecast and adj. EBITA c1% above. However, adj. EBITA fell c3% shy of consensus. Vimian indicated that margins in diagnostics would remain at the current level for some quarters due to investments in new products. We believe the investments will pay off handsomely in the coming years and should strengthen growth and margins in the division and ultimately the group. For the coming quarters, Vimian’s focus will be on organic gr...