On Tuesday, Goldman Sachs (NYSE:GS) maintained its Buy rating on IMCD NV (AS:IMCD:NA) stock, with a steady price target of EUR205.00.
The firm's analyst highlighted IMCD's third-quarter performance, which showed an increase in organic gross profit (GP) growth to approximately 7%, surpassing both the previous quarter's 4.4% and the consensus estimate of around 5%.
This uptick, combined with positive developments in the second quarter and the company's forward-looking statements regarding its fourth-quarter order book, suggests a promising return to normalized organic growth in 2025.
IMCD's recent financial results indicate a favorable trajectory, with expectations set for around 5% organic GP growth in the fourth quarter of 2024.
For the full year 2024, the analyst projects a 2.0% increase in organic GP and forecasts an EBITA of €529 million, which would represent an 11.2% margin.
The analysis by Goldman Sachs points to IMCD's robust growth prospects, driven by a blend of mid-single-digit organic growth, strategic mergers and acquisitions, and consistent margins.
The financial institution envisions a potential low-to-mid teens earnings per share (EPS) compound annual growth rate (CAGR) for IMCD over the medium term.
The company's third-quarter performance, combined with its strategic moves and market position, underpins Goldman Sachs' continued optimism in the stock.
The analyst's commentary underscores the belief that IMCD is well-positioned to capitalize on growth opportunities and enhance shareholder value in the coming years.
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