Berenberg cuts DocMorris, warns of market share loss and lower e-script growth

DocMorris AG

09/10/2024 09:47

** Berenberg downgrades DocMorris  DOCM.S  to "hold" from
"buy" and slashes PT by 71% to CHF 36, expecting the Swiss
online drug retailer to face lower e-prescription revenue growth
and market share loss
    ** The broker says it prefers rival Redcare Pharmacy
 RDC.DE , as DocMorris' efforts to attract new e-script
customers have not been as effective as Redcare's
    ** Berenberg expects 45% annual near-term growth in
e-prescription revenues for DocMorris in 2025/26, against a near
100% growth it forecasts for Redcare
    ** Since the introduction of electronic prescriptions in
May, DocMorris has underperformed market expectations, it says
    ** Redcare reported 81% growth of prescriptions sales in Q3,
while the brokerage expects DocMorris to post growth of only 7%
    ** Shares in DocMorris fall 3% to CHF 31.82

 (Reporting by Amir Orusov)
 ((Amir.orusov@thomsonreuters.com))