Citi downgrades Aska Pharmaceutical stock on narrowed return outlook

Published 24/06/2025, 17:46
Citi downgrades Aska Pharmaceutical stock on narrowed return outlook

Investing.com - Citi downgraded Aska Pharmaceutical (TADAWUL:2070) Holdings (4886:JP) from Buy to Neutral on Tuesday, maintaining a price target of JPY2,600.00 as the expected total return narrowed to 7.4%.

The downgrade follows price action in Aska shares, which have been supported by enhancements to the company’s shareholder return policy and increased investor interest in value stocks, according to Citi.

The research firm has adjusted its earnings estimates for Aska, noting that it expects mainstay product growth in the fiscal year ending March 2026, with profit growth likely to be driven by the consolidation of overseas subsidiaries and reduced R&D spending.

Citi has excluded TRM-270 from its earnings forecasts after the drug failed to meet the primary endpoint of a Phase-3 trial, resulting in downward revisions to overall estimates despite viewing the company’s forecasts for its dysmenorrhea treatment as conservative.

Looking ahead, Citi expects investors to focus on the launch of YazFlex generics in 2027 and results from a Phase-3 clinical trial involving relugolix combination tablets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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