- Viatris ( NASDAQ: VTRS ) continued to trade lower pre-market Friday as BMO Capital Markets downgraded the drugmaker to Market Perform from Outperform, citing a lack of clarity on the company’s next phase of growth profile.
- “VTRS progressing well with strategic initiatives to create additional value, but stock could be rangebound pending execution on next phase of evolution,” the analyst Gary Nachman wrote as he lowered the price target to $14 from $16 per share.
- The analyst welcomes Viatris’ ( VTRS ) decision to sell its biosimilar assets to Biocon but laments the lack of clarity over the timing and size of future divestitures. Nachman also doubts the peak potential of the company’s newly added eyecare franchise.
- As a risk to the bearish thesis, the analyst cites the stock appreciation from a potential near-term divestiture of the company’s EU over-the-counter business for a better-than-expected valuation.
- Read: Seeking Alpha contributor Deep Value Ideas details a bearish thesis on Viatris ( VTRS ) despite its compelling valuation.
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Viatris downgraded at BMO on unclear growth trajectory