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Canonsburg, Pennsylvania-based Viatris Inc. (VTRS) operates as a pharmaceutical company. It offers prescription brand, generic, and complex generic drugs, biosimilars, and active pharmaceutical ingredients (APIs). With a market cap of $13.9 billion, it operates through Developed Markets, Greater China, JANZ, and Emerging Markets segments.
Viatris has lagged behind the broader market over the past year. VTRS stock has gained 7.2% on a YTD basis and 25.2% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 21.2% gains in 2024 and 32.7% returns over the past year.
Zooming in further, Viatris has lagged behind the SPDR S&P Pharmaceuticals ETF’s (XPH) 11.3% gains on a YTD basis but slightly outpaced XPH’s 24.1% returns over the past 52 weeks.
Shares of Viatris surged 6.5% after the release of its Q2 earnings on Aug. 8. The company reported adjusted EPS of $0.69 exceeding the consensus estimate. Despite a slight year-over-year revenue decline, the strong performance in emerging markets and Greater China, along with solid sales from new generic products, helped boost investor confidence. Additionally, Viatris raised its 2024 new product revenue guidance to $500-$600 million, further fueled positive sentiment.
For the current fiscal year, ending in December, analysts expect Viatris to report an 8.9% year-over-year decline in adjusted EPS to $2.67. The company’s earnings surprise history is mixed. It surpassed Wall Street’s earnings estimates in two of the past four quarters while missing on two other occasions.
VTRS stock has a consensus “Hold” rating overall. Out of the six analysts covering the stock, one advises “Strong Buy,” three recommend “Hold,” one suggests “Moderate Sell,” and one has a “Strong Sell” rating.
On Oct. 16, Jefferies analyst Glen Santangelo maintained a “Buy” rating on VTRS with a price target of $15- the Street-high price target. This implies a potential upside of 29.2% from the current price. The mean price target of $13.20 suggests a potential upside of 13.7% from current price levels.
On the date of publication, Aditya Sarawgi 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.
