Redcare Pharmacy Shares: Is a Rebound Taking Shape?

Redcare Pharmacy NL0012044747

Redcare Pharmacy's stock has been among the worst performers in Germany's MDAX index this year, having lost approximately half of its value in 2025. Despite this severe market underperformance, the online pharmacy operator is demonstrating tangible operational progress and a strengthened financial position. Intriguingly, recent insider purchases at multi-year lows are providing a counter-narrative to the prevailing negative sentiment.

Market experts are divided on the equity's outlook. A recent upgrade from UBS moved the rating from "Sell" to "Neutral," though the firm maintains a cautious price target of 74 euros. In contrast, analysts at Deutsche Bank, Baader Bank, and Barclays advocate a "Buy" stance, arguing the steep decline has created recovery potential. The consensus price target among covering analysts stands near 142.75 euros.

Notably, a significant vote of confidence came from within the company. In November 2025, Supervisory Board Chairman Dr. Björn Söder personally acquired 2,000 shares at 63.975 euros each, a transaction worth roughly 128,000 euros. Such insider buying activity, especially when a stock trades at prolonged lows, is frequently interpreted as a signal of faith in the firm's long-term trajectory.

Operational Gains Fail to Translate to Share Price

The underlying business performance tells a more solid story than the share price chart suggests. For the third quarter of 2025, Redcare Pharmacy posted an adjusted EBITDA margin of 2.4% and reaffirmed its full-year guidance. A key financial highlight was the substantial improvement in net liquidity, which increased from 177.6 million euros at the end of 2024 to 265.6 million euros by September 2025.

The core DACH region (Germany, Austria, Switzerland) business, accounting for about 80% of revenue, continues to operate profitably. The primary driver behind the stock's dramatic de-rating appears to be mounting investor concern over intensifying competitive pressures across the European online pharmacy market.

Strategic Hire and Technical Challenges

In a strategic move to bolster its leadership, Redcare Pharmacy appointed Hendrik Krampe, a seasoned executive from Amazon, as its new Chief Financial Officer, effective December 1, 2025. This recruitment underscores the company's ambition to enhance operational excellence within the fiercely competitive e-commerce pharmacy sector.

From a technical analysis perspective, the chart remains challenging. The shares are currently trading well below all key moving averages. The 200-day moving average sits near 97.70 euros—roughly 50% above present levels. The 52-week low of 59.45 euros, recorded in November, remains within close proximity, keeping near-term pressure intact.