Roche price target lowered to $46 from $48 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Roche (RHHBY) to $46 from $48 and keeps an Underweight rating on the shares. The firm also updated its sales forecasts ahead of Q1 results to reflect FX movements. Morgan Stanley expects Q1 group sales to come in about 2% below street. In Pharma, the firm is about 2% below street, driven by weaker Vabysmo and Ocrevus, partly offset by stronger Hemlibra. In Diagnostics, it forecasts sales to be 3% below consensus, reflecting continued headwinds from healthcare pricing reforms in China. Morgan Stanley expects Roche to reiterate FY26 guidance for mid-single digit percentage sales growth and high single digit percentage EPS growth.