Indivior’s Growth Potential and Resilience Amid Market Challenges: A Buy Recommendation

In a report released today, Christian Glennie from Stifel Nicolaus maintained a Buy rating on Indivior (INDV – Research Report), with a price target of p1,100.00.

Christian Glennie has given his Buy rating due to a combination of factors that highlight Indivior’s potential for growth and resilience in the face of market challenges. The company’s first-quarter results outperformed expectations, with group revenues declining less than anticipated, largely due to better-than-expected performance from US Suboxone sales. This indicates that despite increasing generic pricing pressures, Indivior is managing to maintain a competitive edge.
Furthermore, while Sublocade sales saw a slight decline, the overall market opportunity for long-acting injectables remains significant, with expectations for Sublocade to become a blockbuster product. The company’s financial metrics, such as a low EV/EBITDA ratio, suggest an undemanding valuation, providing further upside potential. Additionally, cost-saving measures and a robust cash position strengthen Indivior’s financial health, supporting the Buy recommendation.