Fresenius Medical Care Earnings: Good Start to Year as External Pressures Ease

Fresenius Medical Care turned in decent first-quarter results and maintained its guidance for the full year. At first glance, we do not anticipate changing our fair value estimate (EUR 67/$34) based on this announcement. Overall, the firm's margin goals look achievable to us, and we think its competitive positions in its two major businesses remain intact. However, any further missteps by (new) leadership on its path back to economic profitability may cause us to rethink our narrow moat rating, which currently accounts for about 7% of intrinsic value. Even if that rating change were made, though, Fresenius shares would still appear moderately undervalued.