Fresenius Medical Care seen undervalued with 40-60% upside despite risks, rated 'Buy'

Fresenius Medical Care (FMS) is considered undervalued with a price-to-earnings ratio below 10 despite expected annual earnings growth of 7-9%. The company has improved its fundamentals by expanding margins by 300-400 basis points, achieving over €800 million in savings, and reducing leverage to 2.5 times, enhancing its investment-grade profile. Even with flat or low growth, FMS offers a potential 40-60% upside to a $29 per share target price, justifying a 'Buy' rating. Risks such as reimbursement changes, inflation, and US political factors are manageable due to FMS's market leadership and strong cost controls.