Raiffeisen Raises Biofarm Target Price By 10%

04.26.2011 By Florentina Dragu

Raiffeisen Capital&Investment on Tuesday raised by 10% to 0.23 lei (EUR0.056) a share its 12-month target price on Romanian drugmaker Biofarm (BIO.RO), while keeping its recommendation unchanged at ‘hold’.

Raiffeisen Capital&Investment on Tuesday raised by 10% to 0.23 lei (EUR0.056) a share its 12-month target price on Romanian drugmaker Biofarm (BIO.RO), while keeping its recommendation unchanged at 'hold'.

"We expect Biofarm to increase its market share in 2011 as consumers will continue to favor low priced drugs given the sluggish recovery in purchasing power," the Austrian broker said in a report.

Biofarm's shares closed down 0.6% at RON0.216 in Bucharest.

The company reported net profit of RON14.5 million in 2010, down 25.8% on the year, while total sales rose nearly 23% to RON82.3 million.

For 2011, Raiffeisen estimates overall sales will grow by 9% year-on-year, up from a 6% annual increase previously predicted. (EUR1=RON4.0735)