Vimian, a veterinary company, has been downgraded from neutral to sell by UBS. The reason for the downgrade is that the stock is currently priced too high. The target price remains at SEK 35, but Vimian is trading at a premium of approximately 70% compared to its sector peers.

This is more than double the average premium for European mid-sized medical technology firms with a sales growth rate of 7-13% CAGR. UBS is concerned that the market is expecting flawless execution from Vimian, leaving little room for error. While Vimian has achieved double-digit organic growth in five of the last eight quarters, UBS believes that the elevated valuation combined with potential risks warrants a more cautious stance.

Despite acknowledging Vimian's strong market positioning and improved execution, UBS believes that the current premium valuation is unsustainable.