Redcare Pharmacy shares edged higher on Thursday, gaining over 2.5% in a softer overall market. The uptick followed Deutsche Bank’s reiteration of its buy rating and a 99 euro price target on the stock, which currently trades at 40.46 euros. This significant valuation gap underscores a stark divide between recent market sentiment and fundamental analyst confidence in the online pharmacy’s long-term growth trajectory.
The analyst’s optimism is anchored in the company’s operational performance. For the first quarter, Redcare posted a robust 18.3% increase in group revenue to 848 million euros, surpassing analyst expectations of 837 million euros. This strong start provides a solid foundation for the incoming leadership team, which will be formally appointed at the upcoming Annual General Meeting on April 15, 2026.
That meeting will oversee a sweeping overhaul of the company’s top brass. Hendrik Krampe, with eight years of experience as finance director for Amazon’s European marketplace business and previous roles at eBay, is set to be confirmed as the new Chief Financial Officer. Simultaneously, the supervisory board is being reshuffled, with three long-serving members departing and three new candidates—Anja Hendel, Max Müller, and Peter Schmid von Linstow—proposed to join.
Should investors sell immediately? Or is it worth buying Redcare Pharmacy?
Despite the operational strength and leadership renewal, Redcare faces intensifying structural headwinds. The core over-the-counter (OTC) medicines segment is under direct attack from traditional drugstore chains. The entry of dm with its “dm-med” platform last December and similar plans from Rossmann this year have forced Redcare to slash its growth expectations for this business from 16% to a range of 8-10%. The company has also revised its medium-term margin target for the group downwards from over 8% to more than 5%.
A key defensive moat remains Redcare’s dominant position in prescription medicines (Rx), where it holds a 67% market share. Rossmann has explicitly ruled out entering this segment, preserving Redcare’s stronghold. Management has confirmed its full-year 2026 targets, including group revenue growth of 13-15%, Rx revenue exceeding 670 million euros, and an adjusted EBITDA margin of at least 2.5%.
The stock’s recent performance has been turbulent, shedding roughly 39% of its value since the start of the year before the slight recent recovery. With a market capitalization of approximately 718 million euros, the company remains a central player in Europe’s online pharmacy market. Investors are now looking ahead to the publication of the full quarterly report on May 6 for concrete data on whether the Rx targets remain achievable and can offset the persistent weakness in OTC. The confirmation of Deutsche Bank’s bullish stance suggests some believe the sell-off has been overdone.
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