Strong Q3, Improved Guidance Are Signs Takeda Pharmaceutical May Be Undervalued

2025-01-31 08:30:00 ET

Summary

• Takeda Pharmaceutical offers attractive dividends and has a low price/book ratio, making it appealing despite recent price drops and US policy uncertainties.
• The company reported strong Q3 earnings, raised full-year FY2025 guidance, and announced a new CEO and a significant share repurchase program.
• Revenue and operating income exceeded expectations due to a shortage of generic Vyvanse, favorable exchange rates, and reduced amortization of intangible assets.
• US policy and tariffs pose risks, but Takeda's strong dividend yield and strategic moves make it a worthwhile investment at current prices.

I last wrote about Takeda Pharmaceutical ( TAK ) back in early October . I encouraged income investors to take a close look at them because of their better-than-average dividends and relatively affordable prices....

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