Fresenius Faces More Headwinds in 2027, but Our Favorable Long-Term View Intact

Fresenius Medical Care aims to help patients with end-stage renal disease, or ESRD, primarily through its dialysis clinic network and related medical technology. Its strengths in these related areas help Fresenius maintain the leading global position in this market. Even with the threat of obesity drug expansion in the long run, we expect the firm to benefit from decent demand in developed markets, such as the US, and even faster expansion in emerging markets in the long run. We expect revenue to grow in the low- to midsingle digits during the next five years. Additionally, even with continued headwinds expected through 2027, we expect the firm to boost its operating margins toward industry norms from a low base, which could positively influence its profit growth trajectory.