Roche: share price down, broker lowers target

(CercleFinance.com) - Roche lost nearly 1.
5% in Zurich this morning as Stifel confirmed its 'hold' rating on the stock, with a price target slightly reduced from CHF 320 to CHF 315.

While Roche yesterday held its PharmaDay 2024 in London, Stifel doubts that the major efforts made by management to change strategy, organization and operations over the past year will lead to a radical change in the investment case.

However, over the next 15 months, Roche will deliver a substantial number of clinical results (the company has mentioned 12 phase 3 studies for 2025). "This is what could decide a turnaround," believes the broker.

Stifel also confirms his view that consensus is underestimating estimates by 3-6% for the next few years, irrespective of what the pipeline will bring.

"This could lead to a slight rise in the share price in the short term, but only an improved R&D return could justify an attractive buy case, in our view," concludes the analyst.


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