Roche: Société Générale no longer a buyer.
(CercleFinance.com) - In the wake of the ASCO congress, Société Générale (SG) analysts recently held meetings with oncology experts.
After these discussions, the broker abandoned its buy rating on the Swiss pharma giant Roche, which is specialised in this domain. Alongside their new "hold" rating on the stock, they have also cut their 12-month target price from 330 Swiss francs to 275 Swiss francs.
SG has reduced its estimates as it no longer believes that the group will be able to cope with the headwinds coming from generics, it says in its research report.
As a result, Roche's earnings profile is deteriorating which, in the eyes of analysts, no longer seems to be coherent with the share's currently generous valuation.
SG recognises that Roche's dividend should continue to rise, although it seems possible to find a better risk/return ratio elsewhere in the sector. SG maintains its buy ratings on Novartis, Merck & Co. and AstraZeneca.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
After these discussions, the broker abandoned its buy rating on the Swiss pharma giant Roche, which is specialised in this domain. Alongside their new "hold" rating on the stock, they have also cut their 12-month target price from 330 Swiss francs to 275 Swiss francs.
SG has reduced its estimates as it no longer believes that the group will be able to cope with the headwinds coming from generics, it says in its research report.
As a result, Roche's earnings profile is deteriorating which, in the eyes of analysts, no longer seems to be coherent with the share's currently generous valuation.
SG recognises that Roche's dividend should continue to rise, although it seems possible to find a better risk/return ratio elsewhere in the sector. SG maintains its buy ratings on Novartis, Merck & Co. and AstraZeneca.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.