Roche: Berenberg upgrades stock
(CercleFinance.com) - On Wednesday Berenberg upgraded its rating on Roche shares from "hold" to "buy", having increased its target price for them from 350 Swiss francs to 380 Swiss francs.
In a sector report, the German broker believes it is time to "revisit" the stock after its underperformance relative to the sector YTD.
The analyst notes that the Swiss company has managed to overcome a period characterised by the expiry of patents on its oldest drugs, thanks to the growth generated by its new treatments and its diagnostic business.
Berenberg expects the Basel-based group to post sales growth of around 5% over the medium term, just below the industry average.
However, trading at a 2024 P/E of 16.3x, compared to 14.8x for the rest of the sector, the broker believes that this quality stock is currently "undervalued".
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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.
In a sector report, the German broker believes it is time to "revisit" the stock after its underperformance relative to the sector YTD.
The analyst notes that the Swiss company has managed to overcome a period characterised by the expiry of patents on its oldest drugs, thanks to the growth generated by its new treatments and its diagnostic business.
Berenberg expects the Basel-based group to post sales growth of around 5% over the medium term, just below the industry average.
However, trading at a 2024 P/E of 16.3x, compared to 14.8x for the rest of the sector, the broker believes that this quality stock is currently "undervalued".
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.