Roche: Credit Suisse cuts target price

(CercleFinance.com) - Maintaining its sell rating ("underperform") on the Swiss pharmaceutical stock Roche, Credit Suisse this morning has cut its target price from 240 Swiss francs to 215 Swiss francs (- 10.
4%), in line with its current price in Zurich.

“Our proprietary analysis highlights that Roche is the EU Major most exposed to US proposed reforms and price pressures,” the broker stated in a report. Credit Suisse also cites risks associated with the increasing appeal of biosimilars on both sides of the Atlantic.

Admittedly, Roche's management still anticipates "modest" growth in 2018 and intends to defend margins, however, the broker detects major difficulties for the group's profitability in 2019 (...) and 2020 (...),” Credit Suisse adds.

In the end, analysts expect Roche to report average EPS growth of 2.5% between 2018 and 2022, below the 7.1% growth in the sector.


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