Sandoz: RBC downgrades its opinion to 'in-line performance

(CercleFinance.com) - RBC announced on Monday that it had downgraded its opinion on Sandoz to 'in-line performance' from 'outperform', with a price target nonetheless raised from 34 to 40 Swiss francs.


The Canadian bank's analysts feel that now is the right time to take a 'pause' on the stock after the generics company's solid stock market debut, which has seen gains of around 50% since its IPO a year ago.

In a note, RBC attributes this performance to its strong biosimilars sales, as well as its encouraging medium- and long-term growth prospects.

Analysts believe, however, that the former Novartis subsidiary will have to put in an impressive second half in order to achieve its annual target of a 20% operating margin, a factor which they believe could penalize the share's performance this year.

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