Sandoz: share falls after RBC downgrade

(CercleFinance.com) - Sandoz shares fell sharply on Monday in Zurich, penalised by a downgrade by RBC analysts.


At 2.30pm, the share price was down 1.5% to one-month lows, while the SMIM index of mid-cap Swiss companies was down around 0.2%, only, at the same time.

This morning, analysts at the Canadian bank downgraded the stock to 'sector perform' from 'outperform', albeit with a target price raised from 34 CHF to 40 CHF.

In their view, this is a good time to "pause" on the stock after the generic company's solid start on the stockmarket, with gains of around 50% since its IPO a year ago.

In a note, RBC attributes this performance to its strong biosimilar sales, as well as its encouraging medium- and long-term growth prospects.

However, analysts believe that the former Novartis subsidiary will have to put in an impressive H2 in order to achieve its annual target of a 20% operating margin, a factor which could penalize the share's performance this year.


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