Experts continue to improve their confidence in Rovi shares. If at the end of September the pharmaceutical company recovered the buy recommendation (which it had not held since April), now the analysts improve this poster and their purchase advice is the best in two years. This advice also helps you become the best recommendation of the entire Ibex 35.
For the first time since the company entered the national index (on December 20, 2021), it occupies the first place in The Ibex League (the combined elEconomista.es which is prepared with the averages of the recommendations of Bloomberg and FactSet and which is reviewed weekly). It dethrones Logista and Sacyr, which have been occupying the first two places uninterruptedly for months. In fact, for the first time since 2009, 100% of analysts who study its behavior on the stock market advise taking positions in the company.
Rovi’s stock market history in 2024 is marked by ups and downs. Its shares marked historical highs this year, but from that ceiling they began a decline that has led the company to be trading at levels 30% lower. At that time, the analysts worsened the recommendation for the pharmaceutical company until it was the worst in four years and it was located at the bottom of the ranking, occupying position 32, the worst it has occupied in its history as a member of the selective.
The correction of Rovi’s shares is, mainly, the reason for the improvement of this recommendation in recent months. The pharmaceutical company’s shares have gone from trading at more than 90 euros to now being around 62 euros. “We attribute the latest falls to the recent downgrade of Moderna guides by 2025 and the decrease in the number of candidates to acquire its CDMO division (its third-party manufacturing subsidiary). Yet, We think that current levels of listings offer an attractive entry point“, explained the Banco Sabadell analysis team at the most critical moments for Rovi on the stock market.
Finally, a few weeks ago, Rovi announced that it was ruling out the sale of a part of this subsidiary after examining the different offers received, news that once again had a downward impact on the company’s shares. “TO despite While it is true that the business has good long-term prospects, the opportunity to crystallize that perspective is lost. value in the short term, indicating that sufficiently attractive offers have not been received,” they stressed after learning the news from Renta 4.
These corrections in its price have been occurring at the same time that analysts’ valuations did not suffer significant cuts. Thus, experts continue to see Rovi shares at new historical highs in the following months, estimating their target price at 93 euros on average, which leaves them an upward journey of just over 48% above current levels. It is also established as one of the companies in the main Spanish index with the longest history. Up to two investment banks raise the price fair for Rovi above 100 euros. With this value, Rovi’s potential would grow to 61%.
At a general level, vaccine manufacturing companies, such as Rovi, have recently been affected by Donald Trump’s election of Robert F. Kennedy Jr. as secretary of the Department of Health and Human Services (HHS). Kennedy has anti-vaccine positions and, in fact, has come to relate them to Nazi Germany. In his appointment, Trump asserted that, with Kennedy Jr. at the helm, HHS will serve to “help ensure that everyone is protected from the harmful chemicals, contaminants, pesticides, pharmaceuticals and food additives that have contributed to the overwhelming health crisis” in the United States.
“ANDhe impact of the possible appointment of Robert F. Kennedy is difficult to quantify, although in our opinion it should be limited, since we think that the vaccination rates in the US, once passed to the endemic phase, will depend largely on each person’s willingness to be vaccinated, and we understand that they should remain stable and focused on the age range above 60 years,” say Renta 4.
Quarterly results
On November 7, the pharmaceutical company reported its results for the third quarter of the year. The company beat analysts’ estimates in gross profit by nearly 15% by registering an EBITDA of 97.3 million euros, compared to the 84.8 million expected by analysts and the 74 million in the same period of the previous year.
For the year as a whole, experts expect the gross profit figure to reach 238.1 million euros, which represents a slight decline compared to the 244 million achieved the previous year. However, this contraction in profit will only be temporary and for 2025 analysts set the ebitda at 264 million euros (a growth of 11% in one year), just 5% of the record registered in 2022, of just over 278 million. By 2026, analysts expect EBITDA to be historic, at 337 million.
#punishment #stock #market #elevates #Rovi #recommendation #Ibex
