Roivant Sciences stock rating reiterated by TD Cowen ahead of trial data

Published 02/09/2025, 15:16
Roivant Sciences stock rating reiterated by TD Cowen ahead of trial data

Investing.com - TD Cowen has reiterated its Buy rating on Roivant Sciences (NASDAQ:ROIV), which is currently trading near its 52-week high of $13.05, as the company approaches a key clinical data readout expected in September 2025. According to InvestingPro data, the stock has gained over 11% in the past six months.

The firm maintained its positive stance on the biopharmaceutical company ahead of Phase 3 VALOR DM trial results for brepocitinib, an oral JAK1/TYK2 inhibitor being evaluated for dermatomyositis. This aligns with the broader analyst consensus, as InvestingPro shows analyst targets ranging from $12 to $22 per share.

TD Cowen projects peak sales potential of $845 million for brepocitinib in dermatomyositis in the US and Japan markets, with additional revenue opportunities in noninfectious uveitis potentially bringing total peak sales to $2.3 billion.

The firm’s sum-of-the-parts analysis values Roivant at $25 per share, with components including $8 per share for brepocitinib, $7 per share for COVID royalties, $6 per share in cash, and additional value from its Immunovant assets.

TD Cowen anticipates a favorable risk-reward profile, projecting the stock could rise 25-35% with positive trial data or decline 10-15% if results disappoint.

In other recent news, Roivant Sciences reported its Q1 2026 earnings, which revealed a larger loss than anticipated and a notable revenue shortfall. The company posted an earnings per share (EPS) of -$0.33, missing the forecasted -$0.25. Additionally, Roivant Sciences reported revenue of $2.17 million, significantly below the expected $7.69 million. Despite these disappointing financial results, the stock experienced a slight pre-market increase. The company’s performance has garnered attention from investors and analysts alike, as the earnings and revenue figures were below projections. These developments highlight the challenges Roivant Sciences faces in meeting market expectations. Investors will be closely watching the company’s next steps in response to these financial results.

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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