Roche: Stifel still a buyer
(CercleFinance.com) - Stifel has a buy rating on Roche shares with a target price of 400 Swiss francs.
The analyst believes that the persistence of a mixed performance compared to other companies in the sector constitutes a risk.
Stifel illustrates its viewpoint by showing that over the next four years, Roche has said that around 7 billion Swiss francs in sales could be lost to biosimilars, while 18 billion Swiss francs in additional sales would come from existing drugs (and a very small portion from new drugs).
With a baseline of 45 billion Swiss francs for 2021, additional net sales of 11 billion Swiss francs over four years potentially represent an average annual growth rate of just 5.5%. While diagnostic growth and margins over the same period are not even certain to reach this level, analysts question the competitiveness of the baseline EPS CAGR over 2022-25.
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.
The analyst believes that the persistence of a mixed performance compared to other companies in the sector constitutes a risk.
Stifel illustrates its viewpoint by showing that over the next four years, Roche has said that around 7 billion Swiss francs in sales could be lost to biosimilars, while 18 billion Swiss francs in additional sales would come from existing drugs (and a very small portion from new drugs).
With a baseline of 45 billion Swiss francs for 2021, additional net sales of 11 billion Swiss francs over four years potentially represent an average annual growth rate of just 5.5%. While diagnostic growth and margins over the same period are not even certain to reach this level, analysts question the competitiveness of the baseline EPS CAGR over 2022-25.
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.