TAK - Takeda: Strong Growth Catalysts And Maturing Pipeline Continue To Limit Downside Risk
2024-06-06 06:19:20 ET
Summary
- Takeda Pharmaceutical Company's shares have not been able to overcome overhead resistance and are likely to test their October 2022 lows.
- TAK stock has declined by over 17% since our previous commentary, while the S&P 500 has rallied over 36%.
- Takeda's profitability trends show a decrease in core EBIT, but management remains optimistic about the company's pipeline & growth and launch products.
Intro
We wrote about Takeda Pharmaceutical Company Limited ( TAK ) in March of 2023 when we stamped a 'Hold' rating on the Japanese pharmaceutical outfit. We cited several reasons for our cautious stance at the time, including concerning growth trends and significant overhead resistance that shares were coming up against. Remember, Takeda is a popular income-orientated play in healthcare due to its decent yield & positive profitability. However, as we alluded to in that article 14 months ago, GAAP earnings were not covering the payout (negative pay-out ratio) which made us doubt whether shares could drive above overhead technical resistance with conviction....
Takeda: Strong Growth Catalysts And Maturing Pipeline Continue To Limit Downside Risk