Bernstein analyst Miki Sogi maintained a Sell rating on Shionogi & Co (SGIOF – Research Report) yesterday and set a price target of Yen1,800.00.
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Miki Sogi has given his Sell rating due to a combination of factors impacting Shionogi & Co’s financial performance and future outlook. The company reported a slight miss in its FY24 financial results compared to consensus estimates, primarily due to lower-than-expected sales of its COVID-19 and influenza products in Japan. This underperformance was attributed to fewer cases of these illnesses during the reporting period, which negatively affected revenue and operating profit.
Furthermore, despite the acquisition of JT Group’s pharmaceutical division, Shionogi’s FY25 guidance remains below its original mid-term goals. The anticipated revenue from this acquisition does not fully compensate for the shortfall in their initial targets. Additionally, while the company expects to manage costs more effectively, the projected growth in their HIV franchise is modest, and the outlook for their Acute Respiratory Virus Infection Treatment relies on optimistic assumptions about treatment rates. These factors contribute to a cautious view on the stock’s potential, leading to the Sell rating.
SGIOF’s price has also changed slightly for the past six months – from $13.880 to $15.200, which is a 9.51% increase.