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Original-Research: CS MEDICA A/S - from NuWays AG
04.11.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.
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Classification of NuWays AG to CS MEDICA A/S
Company Name: CS MEDICA A/S
ISIN: DK0061668225
Reason for the research: Initiation
Recommendation: Buy
from: 04.11.2024
Target price: EUR 2.30
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
Revolutionizing alternative medicine; Initiate with BUY
CS MEDICA, a Danish Med-Tech company founded in 2011, is at the forefront of
developing CBD-infused medical devices that offer safe, effective
alternatives for autoimmune and stress-related conditions like arthritis,
psoriasis, pain and hair loss. The company utilizes CBD's proven
anti-inflammatory and antioxidative properties in >10 products, classified
as medical devices or cosmetics and backed by clinical trials. With
regulatory approval in major markets such as the EU, U.K. and the U.S., CS
MEDICA has established itself as a key player in the rapidly growing
alternative medicine space.
CS MEDICA's capital-light business model focuses on R&D and distribution
while outsourcing manufacturing to partners in Europe. This allows the
company to scale efficiently while minimizing operational risks. As one of
only few CBD-infused medical device company registered for sale in
pharmacies, CS MEDICA occupies a unique position at the intersection of the
pharmaceutical and cosmetics markets, offering clinically proven products
with fewer side effects at competitive price points.
CS MEDICA's hybrid product formulations, which combine R&D, clinical
evidence, compliance, and the benefits of CBD, a natural ingredient, set the
company apart from competition. Its flagship line, CANNASEN ®, includes
highly effective treatments for pain, skin disorders, and hair loss, with
superior bioavailability when applied topically.
Strong growth prospects: Global demand for alternative treatments is
booming, with the alternative medicine market projected to grow at a 15.7%
CAGR until 2031. CS MEDICA is well-positioned to benefit from this trend.
Especially non-European markets such as MENA and APAC offer high growth
potentials once the regulatory hurdles have been overcome and social
acceptance increased. The company's private/white-label segment (~ 2/3 of
order intake), offers a steady revenue stream, while its CANNASEN® brand
continues to expand, contributing to rapid top-line growth.
The market's strong growth prospects coupled with CS MEDICA's unique
positioning should allow the company to strongly grow its top-line to DKK
108m by FY 2027/28e, implying a 61% CAGR (vs FY 2023/24e). At the same time,
thanks to the resulting operating leverage, the EBITDA margin should turn
positive, reaching 25%.
We initiate the coverage with a BUY rating and a EUR 2.30 PT based on a SOTP
valuation.
You can download the research here: http://www.more-ir.de/d/31171.pdf
For additional information visit our website: www.nuways-ag.com/research
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2021319 04.11.2024 CET/CEST
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