Redcare Pharmacy's shares climbed 9.0% to close at €62.45 today, extending a two-day rebound after management issued a surprise upgrade to its full-year 2026 revenue guidance following the market close on Monday. The company raised its revenue growth outlook to 15-17% from the prior 13-15% range, a revision that outpaced the average analyst expectation of roughly 14% and helped catalyze buying interest.
The upgrade was supported by underlying trading figures for April and May that management disclosed ahead of the usual early-July interim update. Group revenue grew 20% year-over-year across those two months, accelerating from an 18% growth rate in the first quarter. The most notable contributor was German prescription drug revenue, which expanded 57% year-over-year in the first two months of the second quarter. On a regional basis, the DACH area recorded 21% revenue growth for the same period.
Alongside the top-line upgrade, Redcare narrowed its adjusted EBITDA margin guidance to a range of 2.5-3.0%, replacing the previous open-ended floor of "more than 2.5%." The combination of a higher revenue floor and a more defined margin target appears to have reassured some investors while highlighting where management is calibrating profitability expectations.
On the analyst side, UBS increased its price target on the stock to €60 but maintained a Neutral rating. UBS noted the improved business momentum cited by management, while also observing that the market price had already surpassed the revised target. That divergence between target and market price was reflected in trading activity today.
The broader market provided a constructive backdrop for Redcare's rally. The MDAX, of which Redcare is a constituent, traded in positive territory, aligning with a generally favorable trading environment that supported the stock's gains.
Redcare reached an intraday high of €63.80 today, recovering from a 52-week low of €30.20 that was recorded in late March. Despite the sharp recovery over two sessions, the stock remains well below its 52-week high of €114.00. The company’s upward trajectory will depend on whether the strong prescription drug growth seen in the early part of Q2 is sustained through the full quarter.
In sum, the market reaction combined three elements: a revenue guidance increase that exceeded consensus, a rare mid-quarter disclosure of trading momentum, and a positive market backdrop that together produced a sustained rally over two sessions. While the initial reaction was pronounced, future performance will hinge on the company delivering on the growth trajectory outlined in the early trading figures.