Roche downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Roche (RHHBY) to Underweight from Equal Weight with a price target of $39, down from $44. The firm sees downside to consensus estimates from competition, new launch setbacks and Roche’s upcoming “high risk” pipeline readouts. The company’s lack of pipeline momentum will likely continue into 2026, the analyst tells investors in a research note. Morgan Stanley believes the stock’s valuation “looking demanding.”