Viatris Inc. (VTRS), headquartered in Canonsburg, Pennsylvania, is a global healthcare company that supplies high-quality medicines to approximately 1 billion patients worldwide annually. Valued at $12.54 billion by market cap, the company offers prescription brand drugs, generic drugs, complex generic drugs, biosimilars, and active pharmaceutical ingredients (API).
Shares of this healthcare company have underperformed the broader market considerably over the past year. VTRS has gained 14% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.1%. In 2024, shares of VTRS are down 2.8%, while the SPX is up 10.4% on a YTD basis.
Zooming in further, VTRS has marginally outperformed the US Pharmaceuticals iShares ETF (IHE). The exchange-traded fund has gained about 12.2% over the past year. However, the ETF’s 6.4% gains on a YTD basis compare to the stock’s loss over the same time frame.
VTRS shares declined nearly 5% after the company cut its full-year revenue forecast to between $14.98 billion and $15.48 billion, down from the previous forecast of between $15.25 billion and $15.75 billion.
For the current fiscal year, ending in December, analysts expect VTRS to report an EPS decline of 5.8% to $2.76 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the six analysts covering VTRS stock, the consensus rating is a “Hold.” That’s based on four “Hold” ratings, one “Moderate Sell,” and one “Strong Sell.”
This configuration has been consistent over the past three months.
Recently, Piper Sandler maintained its “Neutral” rating on VTRS stock and increased its price target from $10 to $13, implying a potential upside of 23.5% from current levels.
The mean price target of $12.60 represents a 19.7% premium to VTRS’ current price levels. The Street-high price target of $14 suggests an ambitious upside potential of 33%.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
