Gerresheimer's Stock Plummets 13% on Third Profit Warning
Gerresheimer's transformation program is still in its early stages, with the company facing a challenging situation. The stock price plummeted 13 percent on Thursday, reaching a new low since 2012, following the third profit warning this year. The company's struggles have raised concerns among investors and analysts.
Earlier this year, Gerresheimer adjusted its annual targets downwards twice due to overestimated demand expectations. Despite this, analysts like UBS maintained their buy recommendations, while Goldman Sachs reduced its position by nearly two percent. Markets show little confidence in an imminent turnaround for Gerresheimer. The combination of failed takeover plans, an ongoing BaFin investigation, and the third profit warning indicates a grim situation for the company.
Gerresheimer's stock price has been on a downward trend for over a year, losing over 50 percent of its value. Despite increased sales to 1.68 billion euros in the first nine months, the business shrank organically after adjusting for acquisitions. The stock has practically halved since the beginning of the year, reflecting the harsh reality that is worse than all forecasts, with organic losses recorded instead of expected growth.
Gerresheimer's transformation program is proving challenging, with the company issuing its third profit warning this year and facing a significant drop in its stock futures. Despite increased sales, the company's organic performance has been poor, raising concerns among investors and analysts. The company must address these issues promptly to regain market confidence.