Grifols: If This Works Out, It Has Massive Upside

2025-05-22 12:09:37 ET

Summary

• Grifols offers compelling long-term upside, with potential returns exceeding 200% as the company recovers and grows earnings.
• Recent Q1 2025 results confirm strong operational recovery: top-line growth, improved margins, and significant debt reduction, supporting my continued conviction.
• The primary risk is high leverage, but ongoing cash flow improvements and no dividend payout allow to focus on deleveraging, with dividend restoration likely by 2026.
• At current valuations below €10/share, Grifols is a clear 'BUY' with a €20/share price target, offering an attractive risk/reward profile.

Dear readers/followers,

I have been covering Grifols ( GRFS ) for some time now, through the potential of a sale of the entire company, and back again when that sale did not materialize. I view this as a very good thing. In my history of investing, I have no less than 4 times been subject to a superb investment that I wanted to keep being taken private, bought out, or somehow removed in a way that made it impossible for me to invest. The examples have been sectors like IT; the Norwegian company Data Respons, to something as simple as a food staple/grocer, when Swedish market leader ICA AB was taken private and off the market by the collective/cooperative owners....

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