Roche: Deutsche Bank downgrades stock

(CercleFinance.com) - On Friday Deutsche Bank downgraded Roche shares from 'hold' to 'sell', with a target price reduced from 265 CHF to 235 CHF, citing a lack of short-term catalysts.


The analyst - who says that he had upgraded the stock last May following encouraging initial results in obesity - believes that the data published this week suggest that the Swiss biopharmaceutical group's offer could turn out to be largely 'undifferentiated' in this area.

In his opinion, the risk is that Roche will devote inordinate resources to its projects in this field, for what may turn out to be relatively little payoff in the end.

The analyst also expresses concern about the group's strategic capabilities, particularly with regard to commercial issues, as well as what he deems to be a "structural" decline in its R&D productivity.

Nevertheless, he hopes that the next meeting devoted to the Group's pharmaceutical projects will restore a more encouraging dynamic in the medium term.


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