Roche: Jefferies upgrades stock
(CercleFinance.com) - On Thursday Jefferies upgraded its rating on Roche shares from "hold" to "buy", having increased its target price for them from 355 Swiss francs to 375 Swiss francs.
The broker explains that the favourable sales momentum of Ocrevus (multiple sclerosis), Hemlibra (haemophilia), Tecentriq (anti-tumour) and Evrysdi/risdiplam (SMA) more than compensates for the erosion of sales of Avastin, Herceptin and Rituxan, all of which are facing generic competition.
As a result, Jefferies believes that the pharmaceutical company's revenue growth can now be expected as sustainable, as efficiency and cost-cutting measures are expected to support its margins.
The analyst expects the company to return to average sales growth of around 5% p.a. from 2024 onwards, with potential good news in its drug pipeline.
The share is currently up 1% in a flat market in Zurich.
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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.
The broker explains that the favourable sales momentum of Ocrevus (multiple sclerosis), Hemlibra (haemophilia), Tecentriq (anti-tumour) and Evrysdi/risdiplam (SMA) more than compensates for the erosion of sales of Avastin, Herceptin and Rituxan, all of which are facing generic competition.
As a result, Jefferies believes that the pharmaceutical company's revenue growth can now be expected as sustainable, as efficiency and cost-cutting measures are expected to support its margins.
The analyst expects the company to return to average sales growth of around 5% p.a. from 2024 onwards, with potential good news in its drug pipeline.
The share is currently up 1% in a flat market in Zurich.
Copyright (c) 2022 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.