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On Friday, Goldman Sachs initiated coverage on Viatris stock with a Neutral rating and set a price target of $10.00. The decision reflects the current structural dynamics in Viatris’ core business and the anticipated modest growth in its generics segment. According to InvestingPro data, the stock appears undervalued, with shares trading at just 0.63 times book value and offering a substantial 5.7% dividend yield.
The analysts at Goldman Sachs expressed the need for clarity on Viatris’ growth outlook. They noted that while stability in the U.S. market could be beneficial, it is counteracted by recent challenges. Specifically, the U.S. Food and Drug Administration (FDA) issued a warning letter and import alert for a key manufacturing site in India, which Viatris expects will impact its 2025 revenue by approximately $500 million. Despite these challenges, InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with particularly strong marks in relative value and cash flow metrics.
In the branded segment, Viatris faces challenges due to legacy product erosion in Developed Markets and the JANZ regions, impacting growth. The analysts are closely monitoring for any signs of improvement in these areas.
Goldman Sachs’ outlook aligns with the consensus on Viatris’ revenue and EBITDA projections for 2027. The analysts will continue to observe the company’s performance and provide updates on any significant developments.
In other recent news, Viatris Inc (NASDAQ:VTRS). reported its first-quarter earnings for 2025, which slightly missed analysts’ forecasts. The company posted an earnings per share (EPS) of $0.50, just below the anticipated $0.51, while revenue was $3.25 billion, falling short of the $3.33 billion forecast. Despite these misses, Viatris reaffirmed its full-year outlook, expecting strong performance in the second half of the year. Additionally, Viatris announced successful results from its Phase 3 LYNX-2 trial for MR-142, a treatment aimed at improving night vision in patients with keratorefractive conditions. This drug has been granted Fast Track designation by the FDA, which could expedite its development and review. The company also highlighted its strategic initiatives and new product developments as key focus areas. Analysts from various firms have noted Viatris’ diversified global business and strong cash flow, which are expected to support its strategic priorities. Viatris plans to leverage its existing infrastructure to bring MR-142 to market, pending regulatory approval.
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