Investing.com -- Shares of Fresenius SE (ETR: FREG ) surged more than 8% on Wednesday following its results, which analysts at Jefferies described as broadly in line with expectations but with improvements in key areas.

The German healthcare conglomerate, which operates across hospital management, dialysis services, and pharmaceutical manufacturing, posted solid revenue growth and a stronger financial position, boosting investor confidence.

Fresenius reported group revenue of €21.526 billion, marking a 7% constant currency growth, with Kabi delivering a 9% increase driven by biopharma expansion.

The segment’s EBIT margin expanded to 15.8%, with a structural target raised to 16-18%. Helios saw 6% revenue growth, with EBIT margins stable at 10%. The company’s leverage improved, with net debt-to-EBITDA now projected at 2.5-3.0x, down from 3.0-3.5x.

Jefferies analysts flagged cost-saving measures, which exceeded targets with €474 million achieved by FY24, surpassing the initial FY25 goal of €400 million.

Fresenius also committed to a 30-40% core net income dividend payout, reinforcing shareholder confidence. Despite foreign exchange headwinds and pricing pressures in China, the company demonstrated resilience across all business segments.

Fresenius' stake in Fresenius Medical Care (NYSE: FMS ) remains a key focus, with potential monetization opportunities closely watched by investors. Further deleveraging and operational improvements will be central to future performance.

Jefferies maintained its “buy” rating on Fresenius SE, with a price target of €44, reflecting further upside potential.