Roche upgraded to “buy” by HSBC with CHF320 target on obesity drug strategy

Published 02/10/2025, 12:22
© Reuters.

Investing.com -- HSBC has upgraded Roche Holding AG (SIX:ROG) to “buy” from “hold” in its latest healthcare sector report, raising the target price to CHF320 from CHF285. 

The upgrade follows key clinical readouts and a reassessment of risk factors around its pipeline. 

The brokerage highlighted that negative catalyst risks tied to giredestrant and astegolimab have eased, improving the risk-reward balance for investors.

HSBC also noted that Roche’s strategic expansion into the cardiometabolic and obesity markets is diversifying its growth outlook. 

The company’s approach combines weight loss induction, maintenance therapies, and adjacent indications such as metabolic dysfunction-associated steatohepatitis (MASH). Analysts said this strategy could gradually lift growth estimates from 2026 onwards.

The brokerage positioned Roche within the “fallen angels” bucket, stocks that were once in favor, later sold off, and are now viewed as recovery opportunities. 

With the latest upgrade, Roche is expected to benefit from what HSBC calls a “catalyst-rich” 2026, when multiple clinical and commercial triggers could support a re-rating of the stock.

HSBC’s analysts described the company’s valuation as more attractive now that near-term risks have receded and new therapeutic areas are beginning to contribute to its medium-term growth algorithm.

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