Berenberg sees long-term upside at CVS Group
By Benjamin Chiou
Date: Tuesday 07 Oct 2025
(Sharecast News) - Berenberg has reiterated a 'buy' rating on CVS Group after the veterinary services company's well-received full-year results on Tuesday, saying it sees both short and long-term opportunities for investors.
The company, which awaiting the conclusion of a veterinary market investigation by the Competition and Markets Authority, expected in mid-October, reported group revenues were 5.4% higher at £673.2m during the 12 months to 30 June.
Like-for-like sales rose by just 0.2%, but core veterinary practices LFL sales were 1% higher, with improved revenue and LFL growth seen in the fourth quarter.
"CVS's FY25 results this morning delivered a solid performance for the group, more so in the context of a tougher trading environment given the UK macroeconomic backdrop," Berenberg said.
"Our focus from here is on the impending Competition and Markets Authority's (CMA) provisional decision regarding its investigation into the UK veterinary sector, due mid-October (which as before we expect will prove supportive for the equity story), strong M&A momentum in Australia, and a more benign trading environment in the UK supporting like-for-like (lfl) growth."
Trading at 13.5 times earnings and with a strong balance sheet to support further growth, Berenberg said: "We continue to be enthused about the short- and long-term opportunities for investors here."
The broker kept a 2,000p target price for the stock, which was nearly 11% higher at 1,383.5p on Tuesday afternoon.
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