VTRS - Viatris Stock Is Still Worth Buying

2024-03-30 01:59:08 ET

Summary

• Viatris Inc. stock has risen by 26.7% since my November 2023 bullish call, outperforming the S&P 500 Index. It's time to update my thesis - read on.
• Although net sales declined (as did EBITDA and net profit) in 2023, we saw an improvement in the gross profit margin and a continuation of the deleveraging trend.
• The company has two new drugs ready for commercialization, Selatogrel and Cenerimod, which have significant growth potential, in my view.
• I like the way the company has developed recently. Although the 55% growth potential I talked about earlier has now fallen to 30%, the stock is still worth buying, in my view.

Intro & Thesis

I initiated coverage on Viatris Inc ( VTRS ) in October 2021, and then updated my bullish thesis a few months ago , stating that the stock looked dirt cheap. The VTRS stock rose significantly by 26.7% since my last update, outperforming the S&P 500 Index ( SPX ) ( SP500 ):

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