Redcare Stock 2026: Debt Under Control – Can Growth Finally Turn Profitable?
- Why Is Redcare’s Stock Recovering From Lows?
- How Did Redcare Restructure Its Debt?
- What’s Behind the Analyst Divide?
- Growth vs. Profitability: Where’s the Disconnect?
- What’s Next for Investors?
- Frequently Asked Questions
Redcare Pharmacy has tackled its debt restructuring head-on, but the market remains skeptical. While the company’s revenue growth is impressive (up 24% in 2025), profitability remains elusive. The stock, down 50% over the past year, is at a crossroads. Analysts are divided, with price targets ranging from €74 to €200. The big question: Can Redcare turn its Rx prescription growth into sustainable margins? Here’s our deep dive.
Why Is Redcare’s Stock Recovering From Lows?
After hitting a 52-week low, Redcare’s MDAX-listed shares showed signs of life this week. Trading volume spiked to 250,310 shares on January 21 – triple the average – suggesting renewed interest following the bond repayment news. While the stock remains down 7% weekly and 50% annually (now hovering around €61), this bounce hints at potential technical support. TradingView charts show the stock remains below its 200-day moving average, reflecting persistent market doubts.
How Did Redcare Restructure Its Debt?
The company just closed a major financial chapter:
- April 2025: Repurchased €157.9M of its original €225M convertible bond
- April 2025: Issued new €300M convertible bond (1.75% coupon, maturing 2032)
- January 2026: Final €64.5M payment on old bond
What’s Behind the Analyst Divide?
| Firm | Rating | Price Target | Date |
|---|---|---|---|
| Deutsche Bank | Buy | €200 | Jan 9 |
| Jefferies | Buy | €150 | Jan 13 |
| Barclays | Buy | €110 | Jan 16 |
| UBS | Neutral | €74 | Jan 7 |
The €133.78 average target suggests 119% upside, but that range (€74-200) reveals stark disagreements. Jefferies calls Redcare a "top European mid-cap pick," while UBS warns of "structural margin pressures."
Growth vs. Profitability: Where’s the Disconnect?
Redcare’s preliminary 2025 numbers show:
- €2.9B revenue (+24% YoY)
- German Rx sales doubled to €503M
- 13.9M active customers (+1.4M)
What’s Next for Investors?
All eyes are on March 4, 2026, when full 2025 results drop. Key metrics to watch:
- Can adjusted EBITDA margin hold above 2.4%?
- How is competition impacting OTC pricing?
- Customer acquisition costs in Rx segment
Frequently Asked Questions
Is Redcare stock a buy in 2026?
Analysts are split – while growth looks strong, profitability remains unproven. The wide target range (€74-200) reflects this uncertainty.
Why did Redcare’s stock drop after good revenue numbers?
Markets focused on slowing OTC growth (just +9% in Q4) versus prescription sales, fearing margin compression.
When is Redcare’s next earnings report?
Full 2025 results will be released March 4, 2026 – the next major catalyst for the stock.
