DocMorris "UBS Evidence Lab inside: a more constructive view on margin..."

Research evidence excerpt

DocMorris "UBS Evidence Lab inside: a more constructive view on margin..."

Powered by Lab Global20 JulyResearch2026ab Evidence UBS YES

DocMorris Equities

SwitzerlandUBS Evidence Lab inside: a more constructive

view on margin prospects, upgrade to Neutral Retailers, Drug-Based

12-month rating Neutral *

Prior : Sell

12m price target CHF10.70Raised operating margin forecasts reflected in valuation

Prior : CHF4.00

We upgrade DocMorris to Neutral from Sell, with a new price target of CHF10.7

(previously CHF4.0) on the back of the company's positively developing track record on Price (17 Jul 2026) CHF10.54

its operating margin turnaround. Hence, we anticipate more supportive prescription (Rx) RIC: DOCM.S BBG: DOCM SW

drug related growth for DocMorris to outweigh our expected rather weak over-the-

counter drugs (OTC) sub business in the German pharmacy distribution market in the Trading data and key metrics

near-term. This aggregates to an expected group organic sales CAGR (FY25-30E) of 52-wk range CHF10.71-3.98

around 10%. Owing to a favourable mix, less OTC price discounts and a further Market cap. CHF0.53b/US$0.66b

improving cost focus, we forecast the company's group EBITDA (UBS adj.) margins to Shares o/s 50.7m (ORD)

expand to around 7% by FY30E. Using a reverse DCF valuation approach suggest that Free float 94%

DocMorris' current stock price discounts much of our more positive expectations. Avg. daily volume ('000) 324

Avg. daily value (m) CHF2.6

Positive sale prospects together with cost focus allow for margins to expand Common s/h equity (12/26E) CHF0.32b

In light of the company's improving momentum in the German Rx market (1H26 org P/BV (12/26E) 1.9x

growth c38%), we now discount market shares of 3.3% (previously Net debt to EBITDA (12/26E) NM