Morgan Stanley analyst Sarita Kapila has maintained their neutral stance on RHHVF stock, giving a Hold rating today.
Sarita Kapila’s rating is based on a combination of factors influencing Roche Holding AG’s performance. The company’s Q1’25 sales results were mixed, with overall group sales slightly surpassing expectations by 1%, but the pharmaceutical and diagnostics segments showed varied performance. Notably, the pharmaceutical segment exceeded expectations by approximately 2%, while the diagnostics segment fell short by around 2%. A significant concern was the underperformance of Vabysmo, which missed consensus expectations by about 8%, potentially impacting investor sentiment due to its anticipated growth.
Roche’s guidance for FY’25 remains unchanged, with expectations for moderate sales growth and high single-digit core EPS growth at constant exchange rates. Despite the challenges, Roche is making substantial investments in the U.S., committing $50 billion over the next five years in research, development, and manufacturing. This strategic move reflects the company’s long-term growth ambitions, yet the immediate financial outlook suggests a cautious approach, justifying the Hold rating. Kapila’s analysis indicates that while there are positive developments, the current market dynamics and sales performance warrant a neutral stance.
According to TipRanks, Kapila is ranked #6280 out of 9371 analysts.
In another report released today, Jefferies also maintained a Hold rating on the stock with a CHF270.00 price target.