VTRS stock touches 52-week low at $8.77 amid market challenges

Published 27/03/2025, 17:18
VTRS stock touches 52-week low at $8.77 amid market challenges

Viatris Inc. (NASDAQ:VTRS), a global healthcare company, saw its stock price touch a 52-week low, dipping to $8.77. The company, which maintains a significant 5.36% dividend yield, has seen management actively buying back shares according to InvestingPro data. This latest price level reflects a significant downturn in the company’s market valuation over the past year. The stock’s performance has been marred by a series of challenges, leading to a notable 1-year change with a decrease of 26.13%. Despite these challenges, the company maintains a strong free cash flow yield of 19%, and InvestingPro analysis suggests the stock is currently undervalued. Investors are closely monitoring Viatris’s strategic moves as the company navigates through a complex healthcare landscape, with hopes for a potential rebound or strategic initiatives that might restore confidence in the stock’s value. For deeper insights into Viatris’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Viatris Inc. reported its fourth-quarter earnings for 2024, which showed a mixed financial performance. The company posted an earnings per share (EPS) of $0.54, falling short of the $0.58 forecasted by analysts, and its revenue came in at $3.52 billion, below the projected $3.62 billion. In light of these results, Jefferies analyst Glen Santangelo adjusted Viatris’ stock price target to $13, down from $15, while maintaining a Buy rating, citing the company’s ongoing challenges at its Indore facility as a factor. Piper Sandler also revised its price target for Viatris to $10 from $14, maintaining a neutral stance due to the absence of a definitive growth catalyst for the company.

S&P Global Ratings downgraded Viatris’ corporate credit and issue-level ratings to ’BB+’ from ’BBB-’, citing elevated leverage expectations and financial pressures anticipated in 2025. The downgrade was influenced by a warning letter from the U.S. FDA regarding Viatris’ Indore manufacturing facility, which is expected to strain the company’s EBITDA by $350 million to $400 million. Despite these challenges, Viatris announced a share repurchase program valued between $500 million and $650 million, reflecting its focus on capital return and business investment.

Viatris ended 2024 with total revenues of $14.7 billion, marking a 2% increase year-over-year, and generated strong annual free cash flow of over $2 billion. The company is actively working on resolving issues at its Indore facility, which have impacted its revenue and EBITDA. Despite the operational setbacks, S&P maintains a stable outlook for Viatris, expecting the company to return to sustained revenue growth in 2026, supported by a maturing pipeline of patent-protected products.

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