Redcare Pharmacy Stock in 2026: A Critical Test of Growth vs. Profitability

• Why Is Redcare Pharmacy’s Bond Repayment Making Headlines?
• The Short Seller Conundrum: Growth vs. Margins
• Valuation at Crisis Levels – Opportunity or Trap?
• Technical Outlook: €60 as the Line in the Sand
• March 4 Earnings: The Ultimate Litmus Test
• Redcare Pharmacy Stock: Your Questions Answered

Redcare Pharmacy (ETR: RDC) faces a pivotal moment in early 2026 as investors weigh its explosive revenue growth against mounting concerns about margins and refinancing. With 14% of shares sold short, a €64.5M bond repayment due January 21, and Q4 2025 revenue missing expectations, the stock has plunged 55% from its March 2025 peak. Our analysis digs into the liquidity crunch, the make-or-break March 4 earnings report, and why technical traders are watching the €60 support level like hawks.

Why Is Redcare Pharmacy’s Bond Repayment Making Headlines?

This week marks a financial inflection point: On January 21, 2026, Redcare must pay €64.5M to convertible bondholders exercising their put option. This completes a complex refinancing package that includes:

• A new €300M convertible bond maturing in 2032
• Retirement of €157.9M from the 2021/2028 convertible issue
• €67.1M of the 2028 bonds remaining outstanding

The company reported €265.6M in liquidity as of September 30, 2025 (up from €177.6M at 2024 year-end), suggesting manageable cash Flow despite the payout. "This refinancing kicks the can down the road, but doesn’t solve the core profitability debate," notes BTCC market strategist Liam Chen.

The Short Seller Conundrum: Growth vs. Margins

With 14% of float sold short – extreme for German mid-caps – bears are betting against Redcare’s ability to monetize its expansion. The skepticism persists despite impressive 2025 metrics:

Metric	Value	YoY Change
Group Revenue	€2.9B	+24%
German Rx Sales	€503M	+98%
Q4 Revenue	€794M	(3% below estimates)
Active Customers	13.9M	+1.4M

The January 7, 2026, 8% selloff crystallized concerns when Non-Rx (over-the-counter) margins disappointed. "Growth without profitability is just expensive stagnation," quipped one hedge fund manager on TradingView forums.

Valuation at Crisis Levels – Opportunity or Trap?

At €62.65/share (January 20, 2026), Redcare trades at just 0.56x EV/Sales – a bargain multiple reflecting:

• 48% 12-month decline
• 55% below 52-week high of €138.40
• Near all-time lows

Analyst targets range wildly from €74 (UBS) to €214, with consensus at €142.75. The upgrade from "Sell" to "Neutral" by UBS suggests the worst may be priced in, but as one Frankfurt trader told me: "This stock either doubles or gets halved from here – no middle ground."

Technical Outlook: €60 as the Line in the Sand

Chartists note critical support at €60, tested multiple times in late 2025. The failed rebound to €73 in early January and renewed geopolitical risks create a "sell the rip" environment. "Below €60, we could see algorithmic selling trigger a cascade toward €50," warns a TradingView technical report.

March 4 Earnings: The Ultimate Litmus Test

All eyes turn to Redcare’s full-year report on March 4, 2026, with three make-or-break factors:

1. Non-Rx Margins: Can they stabilize in the face of Amazon Pharmacy’s European push?
2. Rx Profitability: When will prescription operations stop burning cash?
3. Post-Refinancing Cash Flow: Does the new capital structure provide runway?

As one London-based fund manager put it: "They’ve bought time with the refinancing, but now they need to show the market a path to marrying growth with actual earnings."

Redcare Pharmacy Stock: Your Questions Answered

Is Redcare Pharmacy a good buy after the 2026 selloff?

The current valuation (0.56x sales) prices in significant skepticism, making this a high-risk/high-reward play. Conservative investors should wait for March 4 earnings clarity.

Why are short sellers targeting Redcare?

Bets against the stock focus on margin compression in its over-the-counter business and doubts about prescription segment profitability.

What happens if the stock breaks €60 support?

Technical analysts suggest a breakdown could trigger algorithmic selling toward €50, though fundamental investors might see that as an entry point.