Fresenius SE Aims to Create More Value as Activist Investor and New CEO Come on Board; Shares Cheap

Narrow-moat Fresenius SE trimmed its outlook for 2022 related to continued challenges at Fresenius Medical Care and new challenges in its other businesses. While we have tinkered with some of our near-term assumptions, at first glance, our EUR 52 per share fair value estimate has not changed materially after considering recently generated cash flows and the prospects for value creation as new CEOs take the helm at both Fresenius SE and Fresenius Medical Care. Also, Fresenius SE shares remain some of the cheapest in our healthcare coverage, trading at just roughly 7 times forward earnings, and we continue to see decent bottom-line growth prospects for the firm if value creation initiatives are successful and macroeconomic challenges dissipate eventually.