RHHBF - Roche: Strong Long-Term Potential Overshadowed

2024-02-26 03:52:17 ET

Summary

• Roche's financial performance in 2023 showed growth despite the decline in COVID-related sales.
• The company achieved significant milestones, including US approval for Vabysmo, US review for Xolair, and EU approval for a subcutaneous form of Tecentriq.
• Roche faces challenges with its pipeline and acquisitions but remains confident in its future growth prospects.
• A safe balance sheet and progressive dividend yield make the company a buy.

After Q4 and the 2023 fiscal year results, Roche ( RHHBF , RHHBY , RHHVF ) is back at the price of our strong buy recommendation. Our team has a long-standing buy rating for Swiss pharma players. Despite downside risks of COVID-19 lower turnover and Key failure , we believe Roche is progressing well thanks to inorganic acquisitions and its pipeline. Backed by a fortress balance sheet (Roche has an AA credit rating ) and CHF 25 billion firepower, the CEO " is open to acquiring both early-stage and late-stage drug development assets." ...

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