Fresenius SE Decent set-up into H2 at an attractive valuation

Research evidence excerpt

J P M O R G A N

Europe Equity Research

06 August 2026

Fresenius SE

Overweight

FREG.DE, FRE GR

Price (05 Aug 26):€46.61

Decent set-up into H2 at an attractive valuation

▼Price Target (Dec-27):€55.20

Prior (Jun-27):€56.60

The company delivered another beat and raise and pointed to supportive H1

dynamics to continue into H2. Management reiterated confidence in the mid-term

targets as well. Kabi momentum should continue and in Helios, management

clearly expressed its comfort in achieving EBIT growth in FY27, while the

structural margin band remains intact. With the shares trading on 12.4x FY26/

12.0x FY27 JPMe PER, we continue to see Fresenius SE as our preferred pick

within the EU medtech space. Continued beat and raise performance and DD+ EPS

growth should warrant a higher multiple in our view.

H2 moving parts: Management pointed to H1 (rather than Q2) as a better

proxy for H2 dynamics. This is largely reflected in organic growth guidance,

which implies H2 organic growth of around 5% at the midpoint (H1’26 +6%,

guidance +4-7%), although for EBIT margins, FY guidance implies c11% in

H2 which continues to look conservative, in our view (H1’26 12%, FY

guidance c.11.5%). However, the CFO reminded us of H2 dynamics including

Q3 seasonality for Helios Spain, Keto VBP headwinds fully dropping off from

Q3, continued momentum in Biopharma but tougher comps in Q4 (for Kabi

and Helios Spain).

Kabi commentary: The company continues to see strong market share

traction in Biopharma (including Tyenne as well as Denosumab picking up in

the first few months) and pointed to sufficient fuel to meet mid-term targets

(which in our view look conservative). Within Medtech, Q2 growth was

underpinned by substantial installation of the Ivenix pump and pointed to H1

growth (c7%) as a good approximation for the rest of the year.

Helios commentary: On the German hospital reimbursement landscape,

management outlined that while the temporary surcharge expires at the end of

October, it expects the impact to be substantially mitigated through higher

reimbursement rates, continued volume development, operational and cost

efficiency measures.…