RBC Expects Slowdown in Galderma's Q2 Sales Growth; Price Target, Estimates Revised
RBC Capital Markets anticipates a deceleration in Galderma Group's (GALD.SW) second-quarter constant-currency sales growth, as the research firm adjusted its price target and earnings forecasts for the Swiss dermatology company. "We update our Galderma model ahead of Q2/H1 results (23rd July) and the CMD (planned for H2). We make minor changes to our [near-term] estimates, but we lift our PT to CHF 175 (from CHF 155) on higher [long- term] Nemluvio and margin assumptions. However, we maintain Sector Perform as we believe its valuation premium (34x 27E P/E) reflects the strong growth trajectory, trading in line with higher-valued consumer peers (premium to biopharma) on a growth-adj. basis," according to a Wednesday note. Analysts forecast an 18% increase in second-quarter sales at constant currency, easing from the 26% growth in the previous quarter and consistent with the bottom end of management's guidance range of 17% to 20%. On the margins front, RBC projects a 210-basis-point year-over-year improvement in first-half core EBITDA to 24.8%, with full-year 2026 margin expansion of 250 basis points to 25.7% weighted to the second half as Nemluvio is expected to achieve.
RBC Capital Markets anticipates a deceleration in Galderma Group's (GALD.SW) second-quarter constant-currency sales growth, as the research firm adjusted its price target and earnings forecasts for the Swiss dermatology company. "We update our Galderma model ahead of Q2/H1 results (23rd July) and the CMD (planned for H2).
We make minor changes to our [near-term] estimates, but we lift our PT to CHF 175 (from CHF 155) on higher [long- term] Nemluvio and margin assumptions.
However, we maintain Sector Perform as we believe its valuation premium (34x 27E P/E) reflects the strong growth trajectory, trading in line with higher-valued consumer peers (premium to biopharma) on a growth-adj. basis," according to a Wednesday note.
Analysts forecast an 18% increase in second-quarter sales at constant currency, easing from the 26% growth in the previous quarter and consistent with the bottom end of management's guidance range of 17% to 20%.
On the margins front, RBC projects a 210-basis-point year-over-year improvement in first-half core EBITDA to 24.8%, with full-year 2026 margin expansion of 250 basis points to 25.7% weighted to the second half as Nemluvio is expected to achieve.