FMS - Fresenius cut to Hold at Jefferies citing staffing issues and inflation
- Jefferies downgraded the Fresenius Medical Care ( NYSE: FMS ) ( OTCPK:FSNUF ) ( OTCPK:FSNUY ) to Hold from Buy on Monday as the analysts pointed out that the staffing shortages and inflation could hurt the dialysis provider even after the company reported an improvement in excess mortality during Q2.
- The analysts led by James Vane-Tempest argue that staffing shortages which can significantly delay new patient starts, have the same impact on the business as the excess mortality.
- The analysts also cited the company's recently issued profit warning in slashing the FMS price target to €29.00 from €64.00.
- Despite a better-than-expected impact from the recent supreme court ruling against the rival DaVita ( DVA ) over payer reimbursements for kidney dialysis, Jefferies lowered the forecasts for FMS to indicate some fundamental pressures.
- In June, DVA shares reached a 52-week low as management weighed the impact of the supreme court ruling that rejected the company's claims that Marietta Memorial Hospital violated the Medicare Secondary Payor Act (MSPA).
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Fresenius cut to Hold at Jefferies citing staffing issues and inflation